Venezuela says oil stocks high, sees no OPEC rise

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Wednesday, 26 August 2009

World oil inventories are too high, Venezuela's Oil Minister Rafael Ramirez said on Tuesday, adding that he did not expect OPEC to raise output at its meeting next month. Ramirez told Reuters that oil could reach an average of $70 per barrel by year-end if "current conditions hold," and could go as high as an average $75 per barrel in the last three months of the year.
"Inventories have declined but they remain above average. We need for them to come down to the average levels," Ramirez said.
Members of the Organization of Petroleum Exporting Countries meet in Vienna on Oct. 9 to discuss output policy. Other members have indicated a reluctance to increase production due to high inventories despite a sharp increase in prices in recent months.
"We've said that the price of a barrel will end the year at $70 and I think if current conditions continue we will achieve that," Ramirez said.
Analysts surveyed by Reuters on Tuesday said they expected U.S. oil inventory data to show a decline in crude oil stocks this week as importers shun purchases with tanks brimming.
Source: Reuters