"Within days, oil prices will come down" Ali Rodriguez Opec President and Venezuela's Energy Minister said. Writes El Universal, a Local Venezuelan Newspaper.
Rodriguez pointed out that " OPEC members want price stability in the markets, price volatility is not convenient for any one, affect consumers and producers" That is the motive that will bring the prices down.
The President of OPEC and Venezuela's Energy Minister said to El Universal, that there is a need for price stability on the market, the prices will go down to the $ 22-$28 range within the coming weeks said Rodriguez. He said that taxes carry more weigh on prices that any other factor.
Also "the speculation has move the process up, but we can see the prices going down in the last day" Rodriguez said. According to an OPEC study, the final oil prices are affected in 16 percent by the producers participation and in 84 percent by taxes, distribution and refining. World oil demand as increase to 78,6 millions of barrels per day, only 29.2 Bpd is produce by OPEC members.
"Venezuela and Saudi Arabia can respond to the increase in production" Venezuela is making investments in order to increase the production to 5.2 millions of barrels per day in 10 years. "By October the OPEC production will increase in 800.000 Bpd. Rodriguez said.
According to PDVSA, the investment of $ 1.000 millions in production increase will make PDVSA able to deliver the amount of barrels needed by the market.
The next OPEC meeting to evaluated the prices will take place on November 12.
Nevertheless, the price band system is in effect and will automatically trigger an increase of 500.000 Bpd if after 28 days , the prices are still above $28 .
( petroleumworld )
© 2000 Mena Report (www.menareport.com)
