Venezuela says OPEC should restore oil price bands

CUMANA, Venezuela (Reuters) – OPEC should create an oil price band of $70 to $90 per barrel if oil prices stabilize, Venezuela’s oil minister said on Friday, adding he expected prices to reach $60 per barrel by the end of the year.

The Organization of the Petroleum Exporting Countries in 2005 abandoned a price band system, which seeks to keep oil prices within a set range, that was adopted in 2000.

Such a system could allow OPEC to raise or lower oil production if the target price slipped outside the set range for a specific number of trading days.

“That sort of mechanism is what there needs to be, or an improved band system with clearly established parameters, a formula that gives certainty and stability for both consumers and producers,” Rafael Ramirez said.

Reuters