Venezuela says it would comply with possible OPEC output cut

Monday, May 26, 2003
(05-26) 12:47 PDT CARACAS, Venezuela (<a href=www.sfgate.com>AP) --

Venezuela would reduce its oil production if the Organization of Petroleum Exporting Countries decided to slash quotas at its meeting next month, the president of the state oil monopoly said Monday.

"Venezuela will comply with whatever OPEC members decide in June," Ali Rodriguez told a news conference.

Venezuelan officials had previously indicated the country would continue producing more than 3 million barrels a day this year to recover losses stemming from a two-month strike, raising doubts about the South American country's commitment to OPEC quotas.

Venezuela's OPEC current quota is 2.81 million barrels a day but will rise to 2.92 million barrels a day in June. Rodriguez said Venezuela's production was 3.3 million barrels a day. But industry sources say it's much lower.

Venezuela lost an estimated $6 billion during the opposition-organized general strike, which collapsed in February without achieving its goal of ousting President Hugo Chavez. The stoppage temporarily paralyzed the world's No. 5 oil producer.

OPEC countries agreed in April to reduce oil output by 2 million barrels a day, setting a ceiling of 25.4 million barrels a day effective June 1.

The target was up 900,000 barrels a day from the previous one, but to meet it OPEC had to cut actual production by 2 million barrels a day.

OPEC could set new quotas at its June 11 in Doha, Qatar.