Charles Jannuzi
Venezuela President:Continue Efforts To Keep Non-OPEC On Board
CARACAS -(Dow Jones)- Venezuelan President Hugo Chavez said members of the Organization of Petroleum Exporting Countries are continuing their efforts to convince major non-OPEC oil producing nations to limit their exports throughout the second quarter to help OPEC bolster prices. "Now we're making efforts to maintain this deal with non-OPEC," Chavez said Wednesday, speaking at a ceremony at customs headquarters in Vargas State. In December last year, OPEC reached an agreement with non-OPEC producers Russia, Norway, Mexico, Angola and Oman to cut supplies by 462,500 b/d. OPEC decided to cut by 1.5 million b/d. OPEC wants its non-OPEC counterparts to extend the cuts through the second quarter and especially eyes Russia, one of the world's top exporters.
Chavez said he talked by phone with OPEC Secretary-General Ali Rodriguez late Tuesday on the position of Russia for the upcoming ordinary ministers meeting in Vienna on March 15. Rodriguez, a former Venezuelan oil minister in the Chavez administration, visited Russian government officials earlier this week.
"Ali told me he had a very positive meeting...and that meeting was very important," Chavez said, who made clear the current rally in world oil prices is a direct result of OPEC's strategy. "We will never abandon our strategy within OPEC," Chavez added. Last week, the president made clear that Venezuela wouldn't back another oil output cut at the March meeting.
Some analysts interpreted Chavez's comments as an adjustment of Venezuela's policy, which consisted of backing oil output cuts and complying with oil output deals to keep oil prices high.
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US Abraham Sees Russia As Independent Energy Market Player
WASHINGTON -(Dow Jones)- U.S. Energy Secretary Spencer Abraham on Wednesday said he expects Russia to act as an independent player in world energy markets, though he can't speculate about its potential future cooperation with the Organization of Petroleum Exporting Countries. "They (Russia) are another independently important player in this world energy market," Abraham said in remarks to reporters during a break in a congressional hearing. The Energy secretary described Russia as a "separate decision-making entity."
He added that Russia will be represented at a meeting of G8 energy ministers the U.S. is playing host to on May 2-3.
Earlier Wednesday, the head of the International Energy Authority, Robert Priddle, said in Moscow that Russia hasn't yet cut its oil exports in line with its agreement with OPEC to reduce them by 150,000 barrels a day. Priddle said petroleum exports for Russia are actually up in the last two months, but didn't provide any figures.