Caribbean Net News - July 16, 2008
EL AROMO, Ecuador: Oil prices are likely to keep rising and will never again fall below $100 per barrel, Venezuela's oil minister said on Tuesday, hours after crude dropped $9 per barrel on worries over the US economy. Rafael Ramirez said there was no need for OPEC to hold an emergency meeting or change output levels since high prices are due to geopolitical tensions, financial speculation and continued declines in the value of the US dollar.
"It is most likely that (the price) will stay over $100 -- this has not calmed down yet," Ramirez told Reuters during a visit to Ecuador to launch a refining joint venture between Venezuela and Ecuador. Asked about a possible military attack on Iran, Ramirez said "It would be madness. There would be an increase (in prices) by who knows how much."
Oil posted the largest drop in dollar terms in 17 years on Tuesday as growing concern about the economic health of top energy consumer the United States stirred demand worries. US crude was down to about $138.55 in afternoon trading after topping $147 dollars earlier this month.
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Caribbean Net News: Venezuela's oil minister says prices will keep rising