Venezuela Pushes For OPEC Production Cuts

November 23, 2008 by Douglas A. McIntyre

Tx00338coilwellgusherodessatexasposThe finances of OPEC companies are being badly undermined by the drop of crude from $147 during the summer to under $60 recently.

Several news reports have indicated that the national budgets in both Iran and Venezuela have moved deeply into the red and that there is extreme pressure for them to improve receipts.

Despite the fact that OPEC cut daily production last month by 1.5 million barrels a day, crude has continued it march downward.

Venezuela is now calling for a second OPEC cut of another one million barrels a day. It has also said that it is suspicious that some of the cartel members are not honoring the first cut.

Venezuela president-for-life and resident mental case Huge Chavez needs more capital to support his grip on the country and the influence that his money buys with other South American states.

It should come as no surprise that "Venezuela will call on the Organization of Petroleum Exporting Countries to reduce oil output by 1 million barrels before year-end," Energy and Oil Minister Rafael Ramirez told Bloomberg.