Venezuela's Chavez says current oil prices are 'fair'

Caracas (Platts)--16Jan2006

Two weeks before OPEC oil ministers meet to discuss oil prices, Venezuelan
President Hugo Chavez described current prices as "fair."' "The price is doing
well, at around $51/bbl for Venezuelan oil; it is a fair price," Chavez said
Sunday on his weekly television show. 
     Traditionally hawkish Chavez also made comments last week supporting
market stability, saying he didn't want oil prices to shoot to levels that
could hurt world demand.
    However, in another verbal attack on the US government during a speech on
Friday, the socialist president speculated that prices would soar past
$100/bbl if Venezuela were to suspend oil shipments to the US or close the
eight refineries it owns there through Citgo Petroluem Corp. 
     Chavez has said such actions would only be taken in the event of a US
attack on Venezuela, which most analysts say is extremely unlikely. Venezuelan
oil exports last week averaged $52.47/bbl, according to the Energy Ministry,
although the government is basing its 2006 budget on a conservative estimate
of an average price of $26/bbl.
    Several OPEC ministers have suggested that an OPEC production cut was
unlikely so long as oil prices remain at current high levels, above $60/bbl
for New York light crude oil futures.

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