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Chavez sees fair oil price at $70 to $90
Venezuela President Hugo Chavez said on Wednesday a "fair" price of a barrel of oil would be between $70 and $90 per barrel, as OPEC ministers met to slash global oil supply.
And if the markets aren't paying his 'fair' price that is justification for revolutionary acts. Expect things to get even worse for business owners and conservatives in Venezuela.
We think it should stabilize at $70, $80, $90. That would be fair," Chavez told Reuters on the sidelines of a summit of Latin American and Caribbean leaders near Brazil's northeastern city of Salvador.
Wonder what he's charging Joe Kennedy this year?
OPEC oil ministers, including from Venezuela, were meeting in Algeria on Wednesday to remove a record 2 million barrels per day from oil markets in a race to balance supply with the world's rapidly crumbling demand for fuel due to a global economic slowdown.

As the ministers convened a meeting which was expected to proceed smoothly, oil was trading just above $44 a barrel.

Saudi Arabia, the world's biggest oil exporter, has led by example -- reducing supplies to customers even before a cut has been agreed to help push prices back toward the $75 level Saudi King Abdullah has identified as "fair."

Venezuela's finance minister, Ali Rodriguez, backed the Saudi view. "The Saudis are talking about $75. We agree with something around that price," he told reporters. Venezuela's budget for next year is based on oil prices fetching $60. "At current levels, we would have to cut government expenditures," Rodriguez added.

Oil below $50 is uncomfortable for all producing nations, but especially for OPEC members Venezuela and Iran which depend on high prices to fund their ambitious domestic programs.
Posted by: Fred 2008-12-18
http://www.rantburg.com/poparticle.php?ID=257512