Venezuela supports oil production cut

The Venezuelan government said on Monday that it favored a cut in OPEC's oil production to restore the balance of the international oil markets.

Venezuela's Energy and Petroleum Minister Rafael Ramirez said that there should be a cut in oil production as the levels of oil inventory were above their historical averages.

In view of "the fundamentals of the market," a production cut should be proposed, Ramirez said. "But given current price levels, we will have to discuss... the best position to take."

OPEC (the Organization of Petroleum Exporting Countries) will hold a special meeting in Caracas on June 1.

"Prices have not obeyed market fundamentals: instead they have been strongly influenced by the geopolitical tensions, for instance between Iran and the United States," Ramirez said.

Iran initiated its nuclear program this year despite international opposition, particularly from the United States, which has a large number of troops in neighboring Iraq. Fears of a regional war have helped to push up oil prices since early 2006.

Iran's oil minister is due to arrive in Venezuela on Monday, and the ministers of other OPEC countries will arrive on Tuesday.

Source: Xinhua