Global Oil Output Staying at Current Level De Facto Production Freeze

VIENNA (Sputnik) – Oil production remaining at the current level would signify that there is a de facto crude output freeze, Venezuelan Oil Minister Eulogio Del Pino said Wednesday.

Speaking in the Austrian capital of Vienna ahead of the Organization of the Petroleum Exporting Countries (OPEC) session on Thursday, Del Pino referenced the situation in the last few months as evidence of the de facto crude output freeze.

"The production has stayed the same in the last three or four months due to the circumstances that negatively influence some oil producing states," the minister said as quoted by the Venezuelan Petroleum Ministry.

In April, OPEC and major non-OPEC oil producers failed to agree on freezing oil output at January levels to shore up prices. Saudi Arabia backed out of the deal, insisting that Iran, which has been boosting oil production after years of international sanctions, should be part of any production cuts.

Venezuela was especially keen on a deal to curb oil production as its heavily crude-reliant economy was massively hit by the situation in the market.

Global oil prices plunged from $115 to less than $30 per barrel between June 2014 and January 2016, hitting their lowest levels since 2003 amid the glut in global oil supply and causing significant problems for energy companies and oil-producing countries. Prices have rebounded since January, gaining over 70 percent by May.