Last month Richardson conducted similar visits but without securing any firm commitments on increased volumes. The agreement has reduced daily output by around five million barrels per day to 75 million compared to an estimated world consumption of 77 million barrels. The US is demanding increased production of about two million barrels per day, but this figure is thought to be higher than that being considered by the major oil producers, who are fearful of a return to the price levels of December 1998. Both the OPEC and non-OPEC producers are concerned that if production is raised to the levels demanded by the US, then prices will start to fall as demand for oil slows in the latter half of this year. Outgoing OPEC general secretary Rilwana Lukman said that the OPEC group expects the demand for crude to fall by 2.8 million barrels a day, limiting the need for more production.
Oil accounts for about half of government revenue in Venezuela.
It is OPEC's second largest producer and the world's third largest exporter. With continued low oil prices proving extremely beneficial for US inflation figures, and thereby helping to sustain the stock market boom, US politicians have responded with increasingly bellicose statements to attempts by the oil-producing nations to restore price levels. Last week, in a 382 to 38 vote, the US House of Representatives passed legislation introduced by the Republicans instructing the president to prepare a report on the current oil situation and to undertake efforts to force OPEC and non-OPEC countries to boost their production levels. However many Republican representatives wanted stronger action. Earlier Republican Benjamin Gilman, chairman of the House International Relations Committee, had called for the withholding and possible suspension of US aid and arms sales to countries found to be engaged in oil price fixing detrimental to the US economy.