Venezuela And Nigeria Cutting Oil Production
Venezuela and Nigeria have announced they will be cutting oil production by a combined 170,000 barrels per day. The largest share of the cuts are from Nigeria.
An OPEC spokesman told AFP the decisions were made voluntarily by each country, insisting they were not imposed by the Organization of Petroleum Exporting Countries.
"Venezuela has formally informed OPEC that it will be cutting voluntarily production by 50,000 barrels a day as of 1st of October," OPEC spokesman Tarek Amin said Friday.
"Nigeria will cut their production by five percent, which is around 120,000 barrels a day. These are both voluntary cuts, these are not cuts made by the Organization."
This is an interesting development. The speculation is that this is because of the recent price slump.
World news | Gaius Friday, 29 September , 2006
By American Crusader, Friday, 29 September , 2006 @ 12:53 pm
More likely it is in response to Americans boycotting or at (east saying that they are) of CITCO. 7-11’s decision to not renew their contract might also have played a part.
By Matthew, Friday, 29 September , 2006 @ 2:32 pm
SPECULATION ALERT: It may also be cover for the fact that the Chavez government has run its oil industry into the ground and its infrastructure has deteriorated to the point where Venezuela cannot produce as much oil as it once did.
By ck, Friday, 29 September , 2006 @ 2:50 pm
Two countries that need money way worse than we need oil? I’d say it’s a lack of capacity due to maintenance.