Oil in Global Economy Series: Venezuela calls 12 more oil producers to join OPEC cuts

Venezuela’s oil minister Eulogio Del Pino said that he has invited up to 12 more oil producers to join the OPEC initiative that began last November with an aim to reduce global oil supplies by 1.76 million barrels per day. So far 10 non-OPEC producers including Russia have joined the OPEC initiative. The former head of the Venezuela state-owned oil company, speaking at an energy forum in Moscow said he has invited around 12 countries from Africa and North America to join the OPEC meeting that will be held in November. He added that OPEC ministers are still debating whether it should continue with the current production target of 1.8 million barrels per day or increase it.

However, reports from sources within OPEC suggests that many countries like Nigeria, Iraq, and Ecuador are strictly opposed to further cuts. In addition to that, even after 9 months, many countries are still to become fully compliant with the agreement.

The Brent crude, which is considered as the global oil benchmark has declined after reaching $59.5 per barrel, the highest level since June 2015 and currently trading at $56.8 per barrel.