Venezuelan president says OPEC output OK as is, $30 US a floor price for oil

“We should never allow oil prices to drop sharply,” Chavez said. “One barrel of water is more expensive than a barrel of oil, a barrel of wine is three times more expensive than a barrel of oil, while a barrel of whisky – even more.”

** tdrive: Can’t wait for the oil to get as cheap as whiskey…

canadianbusiness.com
November 25, 2004 – 11:07

MOSCOW (AP) – Venezuela’s president said Thursday he supports keeping OPEC oil production at current levels, contracting comments by his energy minister who said last week that Venezuela would support a production cut.

Venezuelan President Hugo Chavez, speaking on the sidelines of a hydrocarbons conference in Moscow, said Thursday that the $22 US to $28 US per barrel price band was “in the past,” and that the minimum price per barrel should be $30 US.

“We should never allow oil prices to drop sharply,” Chavez said. “One barrel of water is more expensive than a barrel of oil, a barrel of wine is three times more expensive than a barrel of oil, while a barrel of whisky – even more.”

OPEC member Venezuela is the world’s fifth-biggest oil exporter and a key supplier to the United States.

Supply interruption fears spurred by turmoil in Iraq have sent prices soaring, with crude futures exceeding $55 US per barrel this year. Recently prices have fallen slightly as those worries have abated.

http://www.canadianbusiness.com/news/article.jsp?content=b112533A