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Two obvious points:

It’s always good when more of a comodity goes into the market (at least for consumers)

and..It’s bad thet Chavez has the resources to prop up his corrupt gov’t.

Another consideation is that Chavez will get desperate, and jump the proverbial shark. Driving the price down cannot make OPEC happy, seeing as how they cut production to enable the opposite. As good as he’s been at understanding economics, I could see the clown depressing his own income.

Chavez has budgeted for $100 per barrel oil. The country is 40% upside down right now with oil at about $55 per barrel. If Chavez (or Iran and Russia) can not reverse the prices of oil they can not cause much trouble. Venezuelan reserves are so low that the country will be unable to pay for most of its imports within 4 months. Iran can not produce more than 25% of its own diesel and imports the rest from Dubai. The Russian markets have tanked by 70% since Feb. and the lack of inward investment has crippled growth. We should no NOTHING except rejoice. Do nothing right now that would rattle the cages and drives up oil prices.

OPEC Basket $54.89 11/06
Venezuelan Basket: $52.96 11/07
11/07:BRENT IPE $57.35 NYMEX WTI $60.04
11/07: US$/VBOF:Parallel 5.00-buy 5.20-sell
11/07: 1 Euro:1.2717 US $ (2200 GMT )

Venezuelan oil has a high sulfur content. Very few refineries are capabile of distilling and cracking. Most are in the USA. Chavez is not maintaining the Venezuela’s oil infrastructure. Chavez need to sell the rights but only succors would buy.

One last item, the Rockerfeller family used to be big players in Venezuelan oil. I don't know how much the family trust holds now - boycott CITGO.