Venezuela President Hugo Chavez , says current oil prices are fair , not high. "Producers only account for 18 percent of the final cost of fuel," taxes on end products are more responsible for the high prices. Chavez said in a national television broadcast on Wednesday night.
Chavez said that world oil supply in August was 77.8 million barrels per day versus demand of 76 million bbl/d. Cautioning before considering another increase in crude oil production.
Chavez blamed soaring prices on factors beyond OPEC's control and said that current world oil supply is already 1.8 million barrels per day above demand . Oil prices surged to a new 10-year high Wednesday at $37.80 on the NYMEX Exchange.
II OPEC Summit will be held in Caracas Sept. 27-28. It is expected that some of the heads of the OPEC countries will be at the meeting, but the Venezuela Energy and Mines minister Ali Rodriguez, who is also OPEC's president has said repeatedly that OPEC will not discuss prices or production in these talks. The next revision of the market will take place in Vienna on a Ministers meeting on November 12th.
( petroleumworld )
By Elio Ohep
© 2000 Mena Report (www.menareport.com)
