March 5, 2005
Forbes
Venezuelan President Hugo Chavez said Saturday that the Organization of Petroleum Exporting Countries could fix a price for oil in a range of US$40 to US$50 per barrel, adding low petroleum prices were a thing of the past.
Chavez's comments come ahead of a crucial OPEC meeting in Iran on March 16. Some analysts are expecting the cartel to cut production to boost oil prices, which have skyrocketed over the past year on supply worries.
Venezuela, the world's fifth-largest oil exporter, has been consistently pushing for higher oil prices. Venezuela currently produces more than 3 million barrels of crude oil a day.
"The era of cheap oil is over," Chavez told reporters in New Delhi. "The OPEC could fix the price at between US$40 to US$50 per barrel."
"The world should forget about cheap oil. It will never go back to the US$10 per barrel rate that prevailed in those days," he added.
Chavez didn't elaborate on how OPEC would introduce a trading range for oil prices, which are currently set by the market.
Chavez, who is on a four-day state visit to India, earlier Saturday held talks with Prime Minister Manmohan Singh during which the two countries agreed to cooperate in the energy, biotechnology, space and railroad sectors.
India and Venezuela also Saturday signed six cooperation agreements, including two in the energy sector.
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