Venezuela's President Hugo Chavez, said on Thursday "we will defend our oil prices and will not accept pressures from no one" Chavez also said there is a need for OPEC to start cutting oil output and reiterated its concern over falling oil prices.
Chavez added that he is ready to meet with other OPEC head of states to evaluate the oil market situation.
World oil prices have dropped nearly 30 perecent over the last month and OPEC, will cut production if the price fall over the lower end of its band mechanism.
According to OPEC's price band system, production will decrease by 500,000 barrels a day if the OPEC basket of seven crude oils fall over $22 for 10 straight days or will trigger a 500,000 b/d increase if price goes above $28 a barrel for 20 consecutive trading days.
On Thursday, OPEC's basket fell to $21.94/bbl. Venezuela's oil basket ended on Thursday, $20.00/bbl, down 93c from Friday.
Every $1/bbl drop in the oil price reduces Venezuela's income by about $1 billion, according to market observers. Venezuela's oil basket has averaged $26.31/bbl in 2000 versus $16.04/bbl last year.
By Elio Ohep
© 2000 Mena Report (www.menareport.com)
