Riyadh: Venezuela and Saudi Arabia may get Mexico agree to an oil reduction
Venezuela and Saudi Arabia may get Mexico agree on a production cut. Saudi Arabian Oil Minister Ali Naimi and his Mexican counterpart Ernesto Martens meet in Riyadh Sunday.
After the meeting , Mexican Oil Minister Ernesto Martens said "Mexico could agree to an oil production cut if there is a surplus in the market" according to The Associated Press.
Saudi Arabian Oil Minister Ali Naimi and his Mexican counterpart Ernesto Martens reviewed oil market developments at a meeting in Riyadh Sunday.
The two ministers will be joined at trilateral talks Monday by Venezuelan oil minister Alvaro Silva. Two years ago the three producers orchestrated a series of production cuts that were veru successful in bringing the prices up, which at the time had fallen to their lowest level in a decade.
The talks in Riyadh came ahead of a March 16 meeting of the OPEC in Vienna to coordinate production/prices strategy for an expected slump in oil demand during the second quarter of the year.
Though Mexico is not a member of OPEC, it, along with OPEC majors producers Saudi Arabia and Venezuela, is one of the three leading exporters of crude oil to the US.
OPEC is widely expected to cut production between 500,000 barrels a day and 1 million barrels a day in order to maintain its price target of around $ 25 a barrel during the second quarter.
OPEC´S last oil reduction was 1.5 million b/d to bring their total output level to 25.2 million b/d as of February 1.
By Elio Ohep
© 2001 Mena Report (www.menareport.com)