Venezuela says could cut oil output by 100,000 bpd

Reuters, 05.31.03, 5:49 PM ET

CARACAS, Venezuela (Reuters) - Venezuela's Energy Minister Rafael Ramirez said Saturday that the OPEC member could cut oil production by 100,000 barrels per day (bpd) if the cartel decides to reduce output by around one million barrels at its June policy meeting. "In this case, talking about a cut of an additional million barrels, for Venezuela means about 100,000 barrels per day," the minister told state news agency Venpres. Ramirez said earlier this week said that OPEC could cut production by up to one million barrels should it decide to reduce quotas to keep prices within preferred band. OPEC is scheduled to meet on June 11 in Qatar to decide on production policy and rival exporters -- Russia, Norway, Mexico, Oman, Angola, Egypt and Syria -- will also attend the Doha conference. The cartel is concerned that post-war resumption of Iraq's production will cut into prices. Members agreed in April to cut production by 2 million bpd beginning June 1, after several cartel members earlier in the year increased output ahead of the invasion of Iraq. OPEC Secretary General Alvaro Silva said last week that the cartel could consider output cuts to keep oil prices within its preferred price range of $22 to $28 per barrel. Venezuela, the world's No. 5 crude exporter, produces around 3.1 million bpd, according to government figures. Some analysts estimate output is closer to 2.6 million bpd as the state oil firm PDVSA struggles to completely recover from a two-month strike against President Hugo Chavez.