Ramírez: OPEC should cut production

Rafael Ramírez, Energy and Petroleum minister and CEO of Venezuelan state oil giant Pdvsa Monday insisted that the Organization of Petroleum Exporting Countries (OPEC) should reduce crude oil output if it is to stabilize world oil markets.

"We believe that under current market conditions, production should be cut because we are faced with high oil supply levels in world markets," the minister explained.

"If we considered market fundamentals, we should make this move (cut production). Now, however, given price levels, the ministerial meeting should discuss what is the best stance," he added.

"Oil stocks are exceeding historically high average levels. Fuel stocks are soaring. Therefore, we in Venezuela consider that prices are not the result of market fundamentals, but they are mirroring strong geopolitical tensions, for example, in Iran," he explained.

Ramírez provided some details on the 141st OPEC extraordinary meeting that is taking place in Venezuela as of June 1st.

Iranian Oil minister is arriving in Venezuela on Monday, while the other OPEC ministers are to arrive on Tuesday.

"At least 200 delegates are to attend this meeting, including ministers, OPEC governors, country representatives before OPEC, and technical teams for each delegation," he explained.

Ramírez added that the summit includes a meeting of OPEC ministers with President Hugo Chávez.

He ensured that preparations are under way as scheduled.