Venezuela's President Chavez sees oil prices in the $22 to $28 range

Published October 22nd, 2000 - 02:00 GMT

Hugo Chavez said Thursday Venezuela sees world oil prices within the $22 to $28 band. Chavez was speaking in national television broadcast during the signing of The Caracas Energy pact which expand oil exports to Central American and Caribbean states in a soft financial conditions. 


Chavez said, "that the Organization of Petroleum Exporting Countries has established as a target oil price range". "This band range isn't high, but just," Chavez said, adding that the band represents a fair balance between supply and demand.  


Venezuela and OPEC, he added, are working to guide the oil price to within the band range. Chavez, mention once more that" oil futures speculation, high taxes, refining, and rumors are behind the current strength in oil prices". 


On the Caracas Energy pact, Chavez said that the San Jose pact became very inflexible and that it couldn't be modified. "The pact isn't designed to eliminate the San Jose accord, but rather to complement it", Chavez said.  


In the San Jose pact, Venezuela and Mexico provide oil to eleven Central American and Caribbean states under soft financially conditions . 


In the Caracas Energy Cooperation Accord, the same countries will receive oil at current market prices, but will be able to purchase it on very favorable credit conditions. 


The pact financial terms call to priced the oil barrel between $20 and $30 a barrel, include a credit line with a two-year grace period with a 15 years term and a 2 percent annual interest rate. 


By Elio Ohep  


© 2000 Mena Report (

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