Venezuela's Minister of Energy and Petroleum Rafael Ramirez said on Monday that Venezuela supports the idea of an oil production cut at the next meeting of the Organization of Petroleum Exporting Countries (OPEC).

Ramirez, who is also head of the state-run oil company Petroleos de Venezuela (PDVSA), said the cut would help confront the problem of large international oil inventories which were artificially affecting oil prices.

OPEC would consider a cut at its upcoming meeting on June 1 in Caracas, he said, adding that the fluctuating crude prices "are not obeying the fundamentals of the market," due to "speculation" and stockpiling.

He added that Venezuela was discussing a possible agreement about joint offshore gas exploration, but did not offer more details.

At its last meeting in March, OPEC decided to keep oil production at 28 million barrels, representing a third of the world's oil production.

Ramirez also said Venezuela was experiencing logistical problems in the delivery of petrol to 14 Caribbean nations under the PetroCaribe initiative which began last year.

According to the PetroCaribe initiative, Venezuela will supply oil to Caribbean countries under favorable financial terms. Those Caribbean countries have been permitted to spread their repayments over time-scales of up to 25 years with a two-year grace period.

Source: Xinhua