OPEC output cut

Venezuela to push for OPEC output cut

Venezuela is to suggest a new output cut at the next meeting of the Organization of Petroleum Exporting Countries (OPEC) in March

The fluctuation in the international price of crude oil keeps the Venezuelan oil basket with an annual average of USD 36 per barrel, lower than the USD 60 per barrel that Venezuela estimated to build its 2009 budget, Reuters reported.

"In the next meeting in March, Venezuela - jointly with other countries in accordance with information from the OPEC supply monitoring committee - will propose new cuts as needed," former OPEC president Ali Rodriguez told Venezuelan television on Wednesday.

President Hugo Chavez said recently that Venezuela is facing a "hard and difficult situation" due to persistently low oil prices. However, he vowed that he will not cut resources for social programs allocated to low-income sectors.

Analysts believe that reduced revenues amidst crumbling oil prices in world markets are to force Venezuela to take some unpopular measures, such as devaluation. Some officials, however, have ruled out such a possibility in the short term.

SG/SME/RE