Venezuela Can Handle Oil
Price Fall
CARACAS - Venezuela,
producer of over three
million barrels a day,
attentively follows the
swing in oil prices,
while authorities affirm
they are ready to face
any emergency.
Independent experts
affir the country could
face problems in its
economy if the crude
goes under 90 or 80
dollars, but the
government proposed to
parliament a budget for
2009 based on an average
price of 60 dollars per
barrel.
According to Venezuelan
Minister of Finance, Ali
Rodríguez, the country
has a financial margin
to cover any descent in
oil income, besides its
contingency plans.
Different from other
commodity producers also
affected by the crisis
originated in the United
States, Venezuela has
the support of the
Organization of
Petroleum Exporting
Countries (OPEC), of
which it is a member.
In an interview
yesterday with
Venezolana de Televisión
TV network, Rodríguez
recalled that an OPEC
meeting had been moved
forward to October 24 in
Vienna and considered
possible it would
approve a cut in oil
production to defend
prices.
The expert, who was
Minister of Energy and
Oil and former president
of Petroleos de
Venezuela, the cut
should respond to the
possible drop of demand
due to the US
difficulties.
US citizens consume 25
percent of the world´s
energy output, making
them the biggest
consumers of the planet
and a market decisive to
world oil demand.
At the same time,
Rodriguez assured that
Venezuela is ready to
face an emergency, among
other factors with an
important level of
reserves that nears 40
billion dollars.
Also, Venezuela has
achieved important
financial agreements
with China and Russia.
Only in the case of the
Asian country, next year
the accord will reach 12
billion dollars.
In face of the crisis,
about which President
Hugo Chavez has alerted,
Venezuela deposited the
greatest part of its
reserves in banks
outside the United
States and took measures
against significant
turbulences in its
financial system.
Another source of
strength is the control
over the oil industry
decided during the
Chavez administration,
to put the important oil
wealth at the nation´s
service.
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