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

[hoon]

They hope it doesn't fall anyway. Their whole regime is built on oil revenue so they'd be stuck without it.

[Karl]

(Seems like his President disagrees...)

Originally Posted by Karl

...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...

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

[include]

10,000 barrels is a pretty small amount though. Doesn't Chavez do this sort of thing regularly for political ends?

[Karl]

Originally Posted by include

10,000 barrels is a pretty small amount though. Doesn't Chavez do this sort of thing regularly for political ends?

Originally Posted by Karl

OPEC member Venezuela agreed Friday to sell Spain 10,000 barrels of oil per day at 100 dollars a barrel

10,000 barrels daily, not total...

Also, this (and other) reports do not seem to say for how long.

In terms of the political stances of Chávez, this is somewhat different; most of that "cheaper" oil is sold to Latin American and Caribbean countries poorer than itself (and with little or no hydrocarbon resources in their juridiction / control). Repsol YPF (from Spain) already has offshore oil investments in several different countries. This must also be seen in terms of the contradictory behaviour - up to recently one of his regular rants seemed to about Spanish neo-Colonial imperialist imperatives (whether genuine or imagined) in relation to his own country (so thoughtfully liberated from Spain by Simon Bolivar in the 19th century).

It was to the point of the famous incident last year at the Iberoamerican conference where Chávez was told to "shut up" by the Spanish King (this oil deal coming just after the news of the reconciliation meeting between Chávez and King Juan Carlos in Mallorca).

According other reports, a similar agreement has already been reached between Chávez and the Portuguese Government, further to which it is said that the 10,000 barrels figure could be increased in the future.

For some reason many of these Latin American oil economies that underwent this supposed "swing to the left" over the past 5 yr or so, seem to be now "inching back to the right". Not too surprising, but this may disillusion some of the more naive of those socialist-inclined among the "green" people...

[sonimus]

we can say if it ll keep increase at the same pace but it will never be cheap (20USD/barrel) anymore

remaining oil is more and more difficult to get (deep sea, shitty quality...)
and in worse and worse area (nigeria, soudan...)

this has a big impact on costs! and i m not talking yet about speculation

[prashamk]

Originally Posted by 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.

If that's what he believes, why are they offering oil for $ 100 to Spain!

http://www.france24.com/en/20080726-...dollars(barrel

[Karl]

I suppose this replies to some of the statements of Venezuelan Minister Ramirez (at least in the short term): Price of petrol thread

Also: Breaking News - Oil price falls below US$100 per barrrel

[bruce]

Shows what they know. Wishful thinking on their behalf. As the world economy tanks people simply can't afford expensive oil. Supply and demand.

[david16]

President Hugo Chavez of Venezuela has signed a series of energy co-operation deals with China.

He said oil exports from Venezuela to China could rise threefold by 2012, to one million barrels a day.

Venezuela, one of the world's largest oil producers, is seeking new markets to reduce its dependency on exports to the United States.

Mr Chavez has now continued to Russia, for his third visit to Moscow within three months.

BBC NEWS | World | Americas | Venezuela signs Chinese oil deal