Chavez predicts oil could reach $200 a barrel

[Doctor Cynic]

Source: AP

CARACAS, Venezuela - Venezuelan President Hugo Chavez says he expects oil prices to keep climbing and predicts they could reach $200 a barrel.

It isn't the first time the Venezuelan leader has mentioned that benchmark-- though he hasn't said when it might be reached.

Chavez reiterated the prediction after the price of light, sweet crude continued to rise on the New York Mercantile Exchange and settled at $136.38 a barrel Wednesday.

Chavez said in a televised speech Wednesday that oil should be $100 a barrel, but could keep rising to $200.

Read more: http://www.sun-sentinel.com/news/local/caribbean/sfl-0612venoil,0,50846.story

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Gee, what are all the "1t's 4ll th3 sp3cul4t0r's f4ult!!!111!11!" people are going to say?

[Newsjock]

1. ... by next month

n/t

[MessiahRp]

2. Um, by Chavez speculating this, speculators are going to buy higher...

Hoping to get their investments in before such a rise. Speculation is a serious component to why oil prices continue to rise. Elimination of regulation is another.

Rp

[NeedleCast]

3. Chevez Certainly Hopes it Does

[ohio2007]

8. Thats what he "speculates" to happen... such a trend setter

no market driven economy allowed where prices are dictated

[Tempest]

4. Even though Chavez left them out, speculators are playing a big part

http://www.businessweek.com/bwdaily/dnflash/content/jan2007/db20070116_499932.htm

[David__77]

5. $100 seems about right to me.

When Chavez predicted $100 several years ago, people didn't think that was a reasonable prediction. $200 is certainly possible. That would probably precipitate a few things: economic slow-down in the developed countries, enhance the economic (in the aggregate) and political position of developing countries, and stimulate intensive energy efficiency efforts globally. The latter two are probably worth the former.

[On the Road]

6. I am More Impressed with Predictions

from people who have nothing to gain.

[wurstie]

7. Too bad Bush turned down Chavez' offer...

I'll bet $50 a barrel would sound really good right now, wouldn't it?

http://www.guardian.co.uk/business/2006/apr/03/venezuela.oilandpetrol

[ohio2007]

9. OPEC

Venezuela's oil minister Raphael Ramirez told Newsnight in a separate interview that his country plans to ask Opec to formally recognize the uprating of its reserves to 312bn barrels (compared to Saudi Arabia's 262bn) when Mr Chávez hosts a gathering of Opec delegates in Caracas next month.


http://www.guardian.co.uk/business/2006/apr/03/venezuela.oilandpetrol

Nowhere in the article did it say bushco refused to sign or was offered any oil deal

?

[wurstie]

10. I just looked up the first article I could find

with the $50 reference.

Hence Chávez’s offer: Drop the price to $50—and keep it there. That would guarantee Venezuela’s investment in heavy oil.

But you are right, here's an article with a more explicit reference to the offer:

http://www.alternet.org/audits/38549/

Naturally Chavez is trying to get his extra heavy crude accepted by OPEC, too, because that would give him more leverage there by increasing his official reserves, which is of course part of the motivation. Meanwhile Bush wouldn't even consider it because Chavez is "the enemy" even though it was an opportunity to undermine OPEC (but that's where his Saudi oil buddies are...).