CARACAS Dec 27 Venezuela said on Tuesday it
will cut 95,000 barrels-per-day of oil production in the New
Year in fulfilment of a producers' deal to reduce global output
and strengthen prices.
Jan. 1 is the official start of the pact by the Organization
of the Petroleum Exporting Countries and several non-OPEC
producers to lower production by almost 1.8 million bpd.
"Without prejudicing its international contractual
obligations, from Jan. 1 2017, (state oil company) PDVSA and/or
its subsidiaries will implement a reduction in the volumes of
its main crude sale contracts, all in conformity with existing
terms and conditions," the Energy Ministry said.
Venezuela, a price hawk within OPEC and one of the nations
worst affected by the fall in crude revenue since mid-2014,
currently produces just over 2.4 million barrels of crude and
condensates per day, according to ministry data.
President Nicolas Maduro has said he will soon embark on a
tour of oil-producing nations to support the OPEC deal.
"I am proposing a new system, a new formula to fix markets
and oil prices to enable stability, harmony, continuity," he
said on Monday, without giving further details of his itinerary
or planned proposal to fellow producers.
"I aspire to at least 10 years of stability with realistic,
fair prices of oil, and I am going to achieve it."
Oil edged further above $55 a barrel on Tuesday, drawing
support from expectations of tighter supply once the first
output cut deal between OPEC and non-OPEC producers in 15 years
takes effect from Sunday.
(Writing by Andrew Cawthorne; Editing by Chizu Nomiyama)