The decision by Venezuela and Nigeria to cut crude oil production will have little immediate impact on U.S. gasoline prices because storage tanks are filled to the brim, an oil analyst says.
Venezuela said on Friday it plans to cut crude oil production by about 50,000 barrels a day. On the same day, Nigeria said it plans to hold back about 120,000 barrels a day.
The cuts, scheduled to take place Oct. 1, are an apparent attempt to jack prices as demand falls.
The price of a barrel of oil has lost about 20% from its July peak of $78.40 on the New York Mercantile Exchange. On Friday, crude oil declined 1cent to $62.90 a barrel. The price for gasoline fell, but heating oil edged up about 3.5 cents. In London, Brent crude declined 6 cents to $62.48 a barrel.
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