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Venezuela and Russia to Cooperate to Stabilize Price of Oil

teleSUR | November 17, 2014

Venezuelan Foreign Minister Rafael Ramirez met with the Russian Energy Minister Alexander Novak in order to discuss potential strategies the two countries could implement in order to stabilize world oil prices. The visit by Ramirez is part of his tour of oil-producing countries in anticipation of the meeting of Organization of the Petroleum Exporting Countries in Vienna on November 27.

In an interview with teleSUR, Ramirez stated that the two ministers agreed on the need for oil producing countries to have closer coordination in order to preserve the price of oil. “During our comprehensive meeting we exchanged points of view on things we could do in the immediate future in order for us to maintain the price of oil and preserve for our people the income from natural resources.”

The price of oil has dropped 30 percent since June, negatively affecting the amount of income going into government coffers. Ramirez stated that this drop in the price of oil can be attributed to several factors such speculators and the sanctions placed on Russia and Iran. He stated that there is an over-production as a result of oil extracted via the environment-damaging hydraulic fracturing, or fracking, method out of the United States, which has flooded the market with an extra million barrels of oils this year.

Ramirez earlier met with the Iranian Oil Minister, Biyan Namdar Zangane, the two agreed to present a proposal at the upcoming OPEC meeting that would stabilize the price of oil at $USD100 a barrel.

Venezuela and Russia are important oil-producing countries, together with Iran, their oil policies have important effects on the world oil market.


Russian and Venezuelan State Companies Close Oil Deal

teleSUR |November 17, 2014

Russian state oil company Rosneft has signed a deal with the Venezuelan government which will see the state entity import 1.6 million tonnes of oil and 9 million tonnes of oil derivatives from Venezuela’s state owned oil company, PDVSA.

The agreement was finalised in a meeting between Rosneft CEO, Igor Sechin, and Venezuela’s Foreign Minister, Rafael Ramirez, earlier on Monday. Ramirez is currently on an international tour, meeting with other oil exporting countries and particularly member-states of OPEC (Organization of Petroleum Exporting Countries) in order to stabilize the falling price of oil. Russia will be his last stop after visiting Algeria, Qatar and Iran.

“I would like to note the growing volume of cooperation in the oil sphere between Russia and Venezuela. Thanks to Venezuelan … minister of foreign affairs Rafael Ramirez, as well as PDVSA’s new CEO Eulogio del Pino for supporting the new projects,” commented Sechin.

Following the announcement, Venezuelan president Nicolas Maduro, also revealed that the two countries had agreed to coordinate a “special meeting” of OPEC and non OPEC countries as a result of Ramirez’s visit.

This is the second oil exportation agreement to be signed between Rosneft and PDVSA, with the first having been negotiated in the May 2014 St. Petersberg International Economic Forum (SPIEF). Russia and Venezuela already have a number of joint oil projects operating in Venezuela, as well as a series of other bilateral agreements.

November 18, 2014 - Posted by | Economics, Solidarity and Activism | , ,

1 Comment »

  1. Why isn’t this a crime, fixing prices? They should compete, many spent huge amounts of money drilling deep to get more oil expecting to sell it at a high price. Now there is many sources so the pie wedges will be smaller pieces, know they need more money for a barrel because of lower volumes. Know why should we pay higher prices then the highest prices ever paid as they will increase it in small increases many times in a short period. Who was the idiots that think if you have it you will have a market at high prices. The US is trying to pump oil from northern Alberta to Texas and to Europe but the have to cut off the supply from Russia, when the pipe line goes ahead, we will know the US has or will definitely have Russian oil stopped. They need stronger threats, like WWIII to get their way. The US has run out of options and if Russia lowers the price to get back at the US, what choice does the US have.

    Like

    Comment by richard123456columbia | November 18, 2014 | Reply


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