Even, after the urgent meeting of OPEC the prices of oil see no change of going down. It is told that crude prices have halved in value from record highs of above 147 dollars struck in July, prompting calls from key OPEC members that the oil cartel should cut its output targets to shore up prices. President Hugo Chavez of Venezuela was the latest to lend his support for an output cut by the OPEC nations as they agree to pump about 40 percent of the world’s oil.
According to Chavez Venezuela for the past 10-plus years has been managing oil production. He added now that the prices are coming down, we are going to take (to OPEC) the proposal of cutting production. Victor Shum, a Singapore-based analyst with international energy consultancy Purvin and Gertz, informed that pressure is building up within OPEC to make output cuts when they meet this week.
OPEC chief Chakib Khelil said the cartel should order a “substantial” cut. He told that there will be a reduction in production at the next extraordinary meeting of OPEC, and it will have to be a substantial one to get the balance right between supply and demand. He informed that if it has to be 1.5 million barrels per day, or two million barrels per day, that’s what it will be.
