Venezuela calls for OPEC cutback as oil falls to $115 a barrel

09 August 2008

Mumbai: Crude oil prices dropped $5 on Friday to hit a three-month low below $115 a barrel as the dollar surged and falling global economic growth hit demand. This has prompted Venezuelan energy minister Rafael Ramirez  to call for an OPEC production cut.

He said the oil cartel will discuss a production cut if market circumstances warrant it when the cartel meets next.

US light sweet crude, which was down $4.82 at $115.20 a barrel during the day, fell further to a three-month low of $114.90 in late evening trade. Nort Sea Brent crude was down $4.53 at $113.33 a barrel.

Oil prices have climbed new highs, hitting a record over $147 a barrel on 11 July.

Oil futures contract has lost nearly $10 a barrel in one week. Oil has shed more than $32 a barrel since hitting a record-high $147.27 on 11 July.

Analysts attribute oil's climbdown to the revival of the dollar's value and a gloomy global economic outlook.