• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

Loading...
See More

Demand collapse threatens oil sector

Jun 13 2012 13:13 AFP

Related Articles

Oil dips ahead of Opec meeting

Oil jumps above $86 on Spanish loan

Oil plunges to 8-month low

Oil prices drop to near $83

Oil returns to triple digits ahead of ECB

Oil rises on stimulus hopes

 

Vienna - Slower growth in developed countries is threatening to provoke a collapse in global oil demand, Venezuela's Energy Minister Rafael Ramirez said at the start of an oil conference here on Wednesday.

"The capitalist system is in a deep crisis," Ramirez told petroleum ministers and representatives from oil companies at the start of a two-day conference.

"Economic deceleration in developed countries... has turned a collapse in oil demand into a clear and present danger," he added.

Oil prices have plunged by 25% since March, hit by oversupply and demand concerns linked to the ongoing eurozone debt crisis and the deteriorating global economic outlook.

Ramirez's comments came ahead of a meeting of the Organisation of Petroleum Exporting Countries (Opec) on Thursday, which will discuss a possible change in oil output levels.

"A stable price over $100 (per barrel) represents the minimum necessary if resources in regions with difficult access are to be produced and brought on stream quickly enough," Ramirez added at the Vienna seminar, sponsored by Opec.

On Tuesday, Ramirez had called on the cartel's members in the oil-rich Gulf to slash their production to help keep crude prices above $100 per barrel, slamming them for over-production.

The Venezuelan also dismissed criticism over the oil industry dominance of Opec, whose 12 member nations pump one third of the world's crude supplies.

"Output response that has materialised outside of Opec has been of a limited and insignificant magnitude to keep pace with long term growth rates," he noted.

Meanwhile, governments and companies were preventing oil producers from receiving "fair and just remuneration" for producing natural resources "that belongs to them."

Ramirez also used this opportunity to slam sanctions imposed on Iran because of its controversial nuclear programme, as an EU oil embargo prepared to come into force on July 1.

"Sanctions, threats and even military aggression have become the main tool to settle international disputes, in particular those related to pretroleum," he said.

opec  |  commodities  |  markets  |  oil

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

Top 10 richest musicians of all time

Check out the gallery to find out who they are!

 
 

Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...