The Minister of oil of Venezuela, Eulochio del Pino warned that in the winter of 2017 fuel prices could collapse to $ 20 per barrel if no measures are taken to limit production. He stated this in an interview with TASS, published on Saturday, June 18.
In this regard, del Pino said that Caracas is planning to put forward new proposals on this subject at the meeting of OPEC countries and independent producers in September. In particular, it is assumed that each country will have their own range of production.
“This proposal is a compromise between “freeze” and a system of country quotas. It’s not that and not another. We’re trying to find the middle. It has a price range that was previously used in OPEC,” said del Pino.
The Minister also said that OPEC should not allow the market to control the price of oil, as this resource is not renewable. “Oil becomes more expensive. Oil extraction requires more and more investment. It is impossible that the price of oil was any. You need to have a fair price for oil, a price that at least justify the investment. Oil cannot be extracted if the price is below this level,” he added.