Venezuela´s Minister of Petroleum Eulogio Del Pino expressed on September 6, 2016, the support for the initiative to stabilize the oil market announced by the Minister of Energy of Russia A. Novak and the Minister of Energy of Saudi Arabia K. Al-Falih.
Del Pino said the statement issued by Russia and Saudi Arabia represents a major step forward in the coordination and joint actions of OPEC’s largest producer and one of the largest non OPEC producers.
Also, it is consistent with the Venezuelan strategy of recent months under the guidelines of President Nicolas Maduro, which aimed at reaching an energy agreement between the largest oil producers and obtaining a fair price for natural resources.
Given the need to reach an agreement within OPEC, Venezuela has presented to the Secretary General of the organization an alternative proposal for consideration at the ministerial meeting in Algeria as part of the 15th International Energy Forum.
This proposal is the result of early August 2016 meetings by the Venezuelan government with major producing countries, including Russia and Saudi Arabia, in addition to Iran.
From the start of negotiations Iran has made it clear that reaching output to pre-sanctions levels is a condition to participating in any agreement to stabilize the market.
The Venezuelan initiative seeks an agreement between producing countries to balance existing positions within OPEC in order to stabilize supply and get a fair price for producers, within a reasonable margin of flexibility.