Vzla: Manipulating the U.S. electorate

Terrorists saw bombs create political change in Spain. OPEC is hoping that oil will do the same in the U.S.

There is a consensus within the OPEC to slash production on April 1 and moves towards raising the oil cartel's price target are gathering steam, Venezuela's Energy Minister Rafael Ramirez said.

"Are you expecting us to change our decision in April? No. We have the consensus to cut in April," he told reporters at the end of a gas exporters' conference in Cairo.Advertisement

"We have the consensus to call for more discipline," he added, referring to current production by members of the Organisation of Oil Exporting Countries above their quotas, estimated by some ministers here at more than two million barrels per day (bpd).

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International crude prices are expected to continue to rule high even during the low-consumption summer months.

The ongoing political unrest in Venezuela, the world’s fifth largest producer of crude, and the decision by the Organisation of Petroleum Exporting Countries (Opec) to cut production by 4 per cent from April are keeping sentiments hard.

Low oil stocks in the US, the world’s largest consumer of petroleum products, has also pushed up prices above the level prevailing during last year’s Iraq war. Last week, Brent crude touched a two-year high of $34.73 a barrel.

Unless non-Opec oil producers raise production and Iraqi oil exports register a significant growth, oil industry experts see no softening of crude prices any time soon.

Expect oil prices to drop November 7th, 2004.