OPEC's President Ali Rodriguez, said the U.S. is partly to blame for the drop in prices because it released 30 million barrels into a market in which inventories were building.
"If OPEC doesn't take action, prices could collapse," Rodriguez, who is also Venezuela's oil minister, was quoted as saying by local newspapers on Tuesday.
In October, the U.S. released 1 million barrels a day from its Strategic Petroleum Reserve as a reaction to high prices
"If these prices continue, below the lower limit of the ($22-28/bbl) price band, all members are in a unanimous accord to automatically cut production in 500.000 barrels per day, on January 8 " Rodriguez said to the press on Friday.
OPEC's price band mechanism triggers a 500,000 barrels a day increase if the basket price holds above $28/bbl for 20 consecutive trading days, or lower output by 500,000 b/d if the basket price moves below $22/bbl for 10 consecutive trading
Also a local newspaper reported Rodriguez as saying,that he plans to quit his oil minister job Jan. 5 before leaving for Vienna for his new post of OPEC Secretary General.
By Elio Ohep
© 2000 Mena Report (www.menareport.com)
