OPEC SUMMIT Chavez on mission to persuade OPEC to maintain higher prices

OPEC SUMMIT Chavez on mission to persuade OPEC to maintain higher prices

	Published : Sat, 17 Nov 2007 09:27 By : Agencies Print this Story

RIYADH (Thomson Financial) - Venezuelan President Hugo Chavez is this weekend pursuing an ambitious diplomatic mission to persuade OPEC nations to keep oil prices at their current level, just above 90 usd a barrel.

Chavez wants the Third OPEC Summit in Riyadh, Saudi Arabia, this weekend to take on a stronger 'political and geopolitical' role and return to its stance of the 1970s when it tightened the screws on consumer nations.

Saudi Arabia, the world's biggest oil producer, insists OPEC remain a purely economic forum despite efforts by hawks in the organisation, with Venezuela the leader, to politicise it.

Chavez believes oil should be priced between 80-100 usd a barrel, and that OPEC must find a way to compensate the world's poorest countries for the high prices.

This view is seemingly endorsed by fellow Venezuelan and former OPEC Secretary General Alvaro Silva-Calderon who, earlier this morning on the sidelines of the summit, said the world economy could cope with oil at 90 usd a barrel.

Chavez also wants OPEC to consider distributing its windfall profits by subsidising oil and gas products in the Caribbean and Latin America.

Chavez has proposed a 'protection formula' so that soaring oil prices 'do not become a destructive bomb on the Third World economies'.

He also believes wealthy consumer countries should pay high prices for oil in order to prevent hydrocarbon waste.

From the summit, Chavez will head to his fourth visit to Tehran on Nov 19, for a meeting with President Mahmoud Ahmadinejad of Iran, with which Venezuela has signed 8 bln usd-worth of accords, mostly in the oil and gas sectors.

Chavez's diplomatic agenda is also to defend Iran's nuclear programme, and help step-up efforts to get Colombian rebels to release hostages.

Meanwhile, oil prices rose back above 95 usd with New York's main contract, light sweet crude for December delivery, jumping 1.67 usd to close at 95.10 usd a barrel and Brent North Sea crude for January delivery climbed 1.39 usd to settle at 91.62 usd a barrel.

tf.TFN-Europe_newsdesk@thomson.com

afp/am

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.