Venezuela sees oil prices staying at record levels in 2004

Caracas (Platts)--10Aug2004

Venezuela sees oil prices surpassing their current record highs in the coming
months, with OPEC needing six months to boost its output capacity, Energy and
Mines Minister Rafael Ramirez said Tuesday. "The market is on an upward
trend," Ramirez told reporters at the Miraflores presidential palace in
Caracas. He did not speculate how high prices could reach. Ramirez said OPEC
is producing very close to its maximum output capacity and would need six
months to bring more production online. Benchmark prices remain firmly over
$40/bbl despite OPEC adding 2.5-mil b/d in production since Jul 1. The group
is scheduled to meet in Vienna next month, where Venezuela is proposing an
increase to the $22-$28/bbl price band mechanism.

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