Posted on 10/10/2008 6:26:00 AM PDT by thackney
Venezuela will propose that OPEC adopt a system of price bands to prevent wild movements in oil prices, a top government official said Thursday.
Bernardo Alvarez, Venezuela's ambassador to the US before he was expelled last month amid a diplomatic spat, mentioned the proposal in an address before Venezuela's National Assembly.
Alvarez said the sharp drop in oil prices since July should worry not only producers, but the whole oil-consuming world because exploration, production and financing of oil activities can become compromised by a sudden decline in prices.
"The idea is that a bands system is set up, that is the Venezuelan proposal. Even when (oil) prices rose well above $100/barrel, president (Hugo Chavez) said $100 was a fair price," Alvarez told reporters after the address. "So, I think we should do it somehow, managing supply and demand, bringing consumers and producers together."
Amid the growing global financial crisis, "we need to impose some order" in international financial circles and a system of price bands will achieve just that, said Alvarez.
OPEC had in place a price band of $22-$28/b, but formally abandoned it in January 2005.
Alvarez did not detail exactly how the proposed new system would work.
OPEC earlier Thursday said it would hold an emergency meeting in Vienna on November 18 to consider the fall in prices and supply/demand fundamentals amid the global economic crisis.
On the topic of US-Venezuela oil relations, Alvarez said Venezuela is still sending "over 1.2 million b/d, every day," to the US.
Once we turn totally Socialist.... I suggest we go in and take over Venezuela...it’s the only to be sure the Revolution continues..../s
This is something that may actually be fun to watch. With the price continuing to drop, “their” addiction to our money will start to cause major withdrawal symptoms.
Most OPEC countries have raised thier budgets to need about $85 USD per barrel. If the price drops below that number they start to run in the red. The only way they can balance their budgets and keep their people payed off is to export more oil. This is why the last price band didn’t last. This is the game that they are playing. DRILL HERE, DRILL NOW!!!!!!!!!!! BUST THEM!
Imagine that...nationalizing profit instead of loss.
Squirm Chavez, squirm.
Your socialism cannot survive with a capitalist backing.
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