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Venezuela says eight non-OPEC Nations invited to Vienna Meeting

Posted on October 15, 2015 by Grace Montealegre

Venezuelan Oil Minister Eulogio del Pino said this Tuesday that eight non-OPEC countries have been invited to an oil meeting to take place next Wednesday the 21st: Azerbaijan, Brazil, Colombia, Kazakhstan, Norway, Mexico, Oman and Russia.

The technical meeting of oil experts from the Organization of Petroleum Exporting Countries and non-OPEC countries will be held in Vienna. "The confirmations are coming in gradually and I'm personally calling ministers to ensure that the delegation is of the adequate level of authority," del Pino said.

Venezuela, an OPEC member, will unveil a bold new strategy this month, taking a page from the organization's history books with a proposed price band to build an automatic floor for prices at $70 a barrel. The proposal would reapply the old mechanism of progressive production cuts to control prices, with a "first floor" of $70 per barrel and a later target of $100 per barrel.

Venezuela has been pushing to stem a tumble in oil prices, but faces an uphill battle to convince its richer Gulf counterparts and non-OPEC nations. The meeting's date was already known but the location and full list of invitees was not revealed until Tuesday. Venezuela's proposal will be discussed at the meeting this month.

An oil price recovery would be positive for recession-hit Venezuela, where roughly 96% of hard currency income derives from oil. However, the International Energy Agency says a global oil supply glut will persist through 2016 as demand growth slows from a five-year high and key OPEC members maintain near-record output.

La Nota Economica - Media Partner