Venezuela to cut oil production

Venezuela said yesterday that it will cut oil production by 50,000 barrels a day to try and stem the recent fall in crude prices, while President Hugo Chavez said an “appropriate” price for oil was 50-60 dollars a barrel.

There was no significant response on world oil markets, however, and analysts said the decision was unlikely to have much impact because the quantity is small and Venezuela is already believed to be underproducing.

Oil minister Rafael Ramirez has informed the Organisation of Petroleum Exporting Countries of Venezuela’s decision to cut back, which will take effect tomorrow, his office said in a statement.

Venezuela “will stop producing 50,000 barrels a day with the intention of mitigating the fall that oil prices have shown in the past weeks,” the statement said.

Light sweet crude for November delivery rose 15 cents to settle at $62.91 (€49.63) a barrel on the New York Mercantile Exchange, where prices have fallen 20% since mid-July.