The President of Venezuela Nicolas Maduro has proposed oil producing countries should discuss creating a currency basket for trading crude and refined products. “Developing a new mechanism of controlling the oil market is necessary,” he said on Wednesday at the Russian Energy Forum, being held in Moscow this week.
According to Maduro, trading paper futures has an adverse impact on the oil market, undermining attempts by the Organization of the Petroleum Exporting Countries (OPEC) to stabilize prices.
Introducing alternative currency baskets, including the yuan, ruble, and other currencies will eliminate the impact of futures trading, according to the Venezuelan president.
Maduro insisted Venezuela is dealing with its debt to Russia, and that Rosneft's deal with Venezuelan state oil producer PDVSA is “subject to negotiation.”
“We fulfill all the obligations to Russia. If we get more favorable terms for restructuring the debt, this will be the result of a deal between the two governments,” said Maduro.
Maduro pointed out that US sanctions make it difficult to negotiate the debt issue with American debt holders.
Caracas is framing a plan to deliver its crude to alternative markets should the White House impose sanctions on trading the country's oil, Maduro said in response to a question on the possibility of PDVSA's default. “Venezuela has plans A, B, C, and others. There are other international companies interested in buying oil and refined products. We will create the best terms for them,” he said.