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At a meeting of OPEC, Venezuela seeks to defend from US production

At a meeting of OPEC, Venezuela seeks to defend from US production

Posted by Dubraswka Aguilar on November 03, 2014

Venezuela was the first member country of OPEC that alerted about the need to seek an urgent meeting to address the decline in oil prices, but the proposal was not found in the major partners such as Saudi Arabia.

Now, when the price of the Venezuelan oil basket has accumulated a 12% drop in the last month, President Nicolas Maduro insists on the need for a common strategy for OPEC to meet oil supply of the United States that is affecting the market.

The idea is to bring a proposal to OPEC to defend the market exploitation of shale oil in the US. "Our minister (Foreign) Rafael Ramírez is in Ecuador evaluating, coordinating with the government of President (Rafael) Correa, and will bring a proposal to OPEC to defend against this type of production," he said.

The president said the oil and shale gas performing US is an "attack that tries to destroy the OPEC" and affect the natural oil market, Efe reported.

Still, Nicolas Maduro has argued that the decline of oil, coming 9 out of 10 US dollars entering Venezuela, will not compromise the country's economy.

Societe Generale Analysts estimate that OPEC could agree to reduce its crude oil production in the range of 1 to 1.5 million barrels per day at its November meeting. SocGen described the estimate the cut as its "central scenario", but added that there was a percentage between 30 and 40 percent of production remains unchanged, according to Reuters.

The price of WTI, the US benchmark, closed Friday at $ 80.54 a barrel, which ended October with a sharp drop of $ 10. This marker is experiencing declines in prices in a clear trend since late September, and after reaching a maximum in June last annual price of $ 103. The price decline in the US has resulted in a lowering of oil in the domestic market. By the moment, the gasoline costs less than milk, since the average cost is $ 3.73 a gallon, according to AP. Yesterday it was sold at $ 2.995, according to the American Automobile Association. It is the first time in four years that gasoline costs less than $ 3 a gallon.

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