According to Venezuelan President Nicolas Maduro, a “special meeting” is being planned between both OPEC and non-OPEC nations to discuss global oil prices, without giving further details, Reuters reports.
“We have coordinated for a special meeting very soon of OPEC and non-OPEC countries to take decisions in defense of oil and the prices of oil and the global oil market,” Maduro said during a nationally televised address on Monday.
The Cash-strapped OPEC nation of Venezuela has been calling for a cut in oil production in an effort to prop up prices that have fallen 30% from their June high to a four-year low.
Maduro recently sent Foreign Minister Rafael Ramirez on a five nation tour to campaign to defend oil prices.
According to Reuters, Ramirez visited five oil producing nations – including several non-OPEC nations such as Mexico and Russia – to rally up support ahead of OPEC’s November 27 meeting.
In his nationally televised address on Monday, Maduro again reiterated that Venezuela had enough resources
to pay its foreign debt obligations and domestic welfare programs.
“Even though the price has fallen 35 percent, I tell you, whatever it falls, the Venezuelan people will not want for anything because the Bolivarian revolution guarantees it,” Maduro said.
On Sunday, according to Reuters, Iran’s Oil Minister accused some countries of “making up excuses to justify their refusal to stabilize prices by cutting output”, in which could be viewed as a possible reference to a recent Saudi Arabian official whom insisted the issue should be left for the markets to determine.
“Certain countries had raised their production after the exit of several countries from the cycle of oil production,” Iranian Oil Minister Bijan Zanganeh said, according to Reuters, referring to sanctions that have driven his country to cut their exports sharply.
“Now it is difficult for them to reduce their production for market stability and they fabricate different pretexts for their action,” Iran’s Oil Minister said, according to Reuters, citing the nation’s News Agency, Shana.
Venezuela has been the most concerned among the group of OPEC nations – and rightfully so – as the nation has been facing a crisis on a domestic front amid a number of challenges. Furthermore, the nation relies heavily on oil as it accounts for 97% of its foreign exchange revenue which the nation urgently needs to pay around $28.5 billion in bond principal that is due in 2016.
Last Thursday, Maduro announced that Venezuela had lost 30% of its foreign exchange revenue in dollars over the last month amid the fall in oil prices.
“We are in a campaign to defend Venezuela, Venezuelan oil, international markets and the price of oil … Oil sustains the development of our economic and social life,” Maduro said on Thursday.
A Jefferies analyst recently warned that Venezuela will earn $16 billion less in 2015 than this year and based on the nation’s current spending rates they will need oil prices to rise to $110 a barrel in order to balance its accounts.
Sources: Reuters, Bloomberg
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