Be Warned OIL JERKS. VENEZUELA wants oil at "22 to 28" not "40/bbl" : LUSENET : TB2K spinoff uncensored : One Thread

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Sunday August 27 5:44 PM ET
Venezuela Wants 'Fair' Oil Price

CARACAS (Reuters) - Venezuelan President Hugo Chavez said Sunday that ``fair'' oil prices remain an economic life-line for the world's third largest petroleum exporter, but insisted he did not want to see crude reach $40 a barrel.

Left-leaning Chavez, who will host a heads of state meeting of the Organization of Petroleum Exporting Countries (OPEC) next month in Caracas, reiterated Venezuela had placed its full backing behind an OPEC price band system to moderate volatile crude prices.

The 11-member cartel has come under strong pressure in recent months from the United States, the world's top oil consumer, and the European Union to raise output to reduce sizzling petroleum prices. At over $30 a barrel, oil is currently near its highest level in a decade.

``We repeat to the world that we will not give in to pressure from anyone to reduce oil prices,'' Chavez said during a five-hour edition of his radio talk show ``Hello President''.

``But neither do we want to raise oil prices to $40 a barrel,'' he added. ``We have established a price band between $28 and $22 a barrel, and prices should be between there.''

The price band mechanism informally agreed by OPEC in June calls for a 500,000 barrel a day increase if the price of OPEC's basket of seven crudes stays above $28 a barrel for 20 working days.

Recalling that low oil prices had almost bankrupted the state when he took office in February 1999, Chavez said that both his recent tour of OPEC nations and the forthcoming summit in Caracas were aimed at ensuring prices remain ``fair''.

``For now, and in coming years, our lives depend on that, until we have a more solid, more diversified economy,'' said the former paratrooper turned president.

Under Chavez's 19-month-old government Venezuela has transformed itself from OPEC's biggest quota buster into the strongest advocate of the fractious group's output ceilings, contributing to the rise in international oil prices.

-- cpr (, August 27, 2000

Answers Sunday August 27 10:49 PM ET
No Output Move Till OPEC Meeting

MEXICO CITY (Reuters) - OPEC President and Venezuelan oil minister Ali Rodriguez said on Sunday red-hot oil prices stemmed from low inventories of refined products and signaled that any decision on oil supplies will not be made until a September 10 meeting of the oil cartel.

``If there is no refining then inventories drop. This is the problem that we have had all year,'' Rodriguez said during a visit to Mexico. ``It's a problem that is beyond OPEC's control,'' he added.

Rodriguez said that on Sunday he met with Mexican counterpart Luis Tellez to exchange opinions on the global oil market. He said the two nations, two of the top three foreign crude suppliers to the United States, planned to issue a statement on Monday.

Earlier on Sunday Rodriguez said his nation was committed to sticking to OPEC's price band mechanism, signaling world oil supplies would increase if prices remain at lofty levels.

Rodriguez was also expected to meet with members of the transitional team of President-elect Vicente Fox, who won a general election on July 2.

-- cpr (, August 27, 2000.

``But neither do we want to raise oil prices to $40 a barrel,'' he added. ``We have established a price band between $28 and $22 a barrel, and prices should be between there.''

I'll believe it only when they finally do get around to increasing production. They've made other promises in the last few months which have ultimately proved to be ineffective in bring oil down below $28 a barrel.

-- We've heard (these@promises.before), August 28, 2000.

I'll call you.

Your check's in the mail.

We're from the government and we're here to help you.

-- Sam (, August 28, 2000.

What the hell does that mean, they WANT it to be $22? I want it to be $.01. That ain't going to make it so!

More SPECULATION here, just like that UNDISCOVERED crap that you posted yesterday. Facts, cpr, facts.


-- Sysman (, August 28, 2000.

Can't wait for this to backfire on cpr so we can jam this shit down his throat the way he's been doing with the oh-so-dead-and-over-with y2k issue. Karma and pay-backs are a bitch, pal.

-- bwahaha (, August 28, 2000.

What Venezuela and the rest of the OPEC and other oil-producing nations want is for the price to be as high as possible.

Surely an astute businessman like cpr can understand this???

What they don't want, and what is driving the games that cpr takes as gospel is for any other new or side-lined players to come on board and drive the price down.

So, they maximize their profits by maintaining a significant measure of instability about what will happen. Promise but don't quite deliver. And don't promise too far into the future. That's what OPEC has been putting us through for sometime now, and it has kept, and will keep, the prices much higher than they would have been.

-- Whatever (, August 28, 2000.

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