OPEC chief says members have "flexibility" on quotas
Alvaro Silva, the secretary general of the Organization of Petroleum Exporting Countries (OPEC) , said on Monday that members of the bloc may adjust production quotas, even though there is certain "flexibility."
In a statement issued in Vienna, Austria, Silva said production quotas established by OPEC were not to be strictly complied with and member countries could keep some tolerances.
In a telephone interview, Silva, Venezuela's former energy and mining minister, told Venpres, the Venezuelan State-run news agency, that these quotas were the consequence of the Iraqi conflict and political problem faced by Caracas.
He said Venezuela remains within the range of forecasts established by OPEC and the excess on quotas is coming to an end.
The official considered the war had not produced a rise, but a drop in price, caused by an estimated two-million-barrels over- production a day.
He announced that OPEC will hold a meeting on April 24 to discuss the possibility of "shrinking" production volumes in the market through a cut or a strict compliance with quota levels.
The measures to be taken at the meeting next week would be positioned to maintain a balance between supply and demand in order to keep oil prices within 22 to US$28 per barrel, Silva added. Xinhua news