Venezuela's oil minister says prices will keep rising

[Karl]

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.

Source: Caribbean Net News: Venezuela's oil minister says prices will keep rising

[Karl]

Venezuela agrees to sell Spain oil at 100 dollars a barrel

Caribbean Net News – July 26, 2008

OPEC member Venezuela agreed Friday to sell Spain 10,000 barrels of oil per day at 100 dollars a barrel in exchange for medicine and other goods, a Spanish government source told AFP. The agreement was reached during a meeting between Venezuelan President Hugo Chavez and Spanish Prime Minister Jose Luis Rodriguez Zapatero in Madrid, the source said. Oil prices hovered around 125 dollars a barrel on Friday after reaching a record high of over 147 dollars on July 11.

Spain would make up the difference between the market price for oil and the price charged by Venezuela, a former Spanish colony, by providing the country with building material, new technologies and medicine, the source said. No date for the start of the sales of Venezuelan oil at reduced prices was announced. Venezuela already provides oil at reduced prices to several Latin American countries including Cuba. Earlier on Friday Chavez said the price of oil should stabilise at around 100 dollars per barrel. "The price according to our interpretation should be lower and stabilize at around 100 dollars per barrel," he told a joint news conference with Zapatero. Chavez's visit to Spain was the last stop of a tour of Europe that has already taken in Russia, Belarus and Portugal.

Source: Caribbean Net News: Venezuela agrees to sell Spain oil at 100 dollars a barrel