Unstable oil prices are dithering major economies as recently U.S. crude oil prices surged to record highs of $78.77 before falling to around $72.
America urges OPEC to boost production to keep the tempo of oil prices stable, but Venezuela’s oil minister Rafael Ramirez commented that there is enough oil in the market and no reason for OPEC to increase production.
OPEC has already cleared its intention about the additional production that it will decide to increase production after its schedule September’s meeting, but Venezuela’s open back-up to the group will definitely add worries to the world market. America is arraigning that oil producing countries are not pumping enough oil to end the volatility, whereas oil producers group is impeaching that geo-political affairs are more responsible for the higher prices rather than short supplies.
Although OPEC decision might be correct on the forefront, yet it can put many dependent nations on the dock as oil supplies can diminish amid the winter arrival on the Northern Hemisphere. In that case, OPEC contribution will count high, while Venezuela’s further move will also be accountable.
Venezuela has nationalized its oil reserve and signed a conditional deal with western drillers. Chavez led country still looking for foreign investors to develop Orinoco River basin, but new conditional role of Chevron, BP, Total and Statoil will be the most venerable for the stability in world market.
Via: IHT
