BIZ MEN FEAR VENEZUELA PREZ'S $LICK OIL MOVES

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BIZ MEN FEAR VENEZUELA PREZ'S $LICK OIL MOVES Saturday,September 9,2000 By MARIA ALVAREZ

While the spotlight focused on the politics and glitz at the U.N. Millennium Summit, leaders of the world's oil-producing nations were in Manhattan - quietly juggling the future of petroleum prices. The prognosis brightened considerably yesterday, after a member of the powerful Organization of the Petroleum Exporting Countries hinted it would probably increase oil production.

But U.S. industrialists are still concerned about Venezuela's President Hugo Chavez, "a hawk for higher oil prices," said Larry Goldstein, president of the Petroleum Industry Research Foundation. "There obviously is concern. Venezuela has always been cooperative, but there seems to be a conflict now.

"His political philosophy makes some people very uncomfortable and should make them increasingly nervous about investing in Venezuela."

A revolutionary leader turned president, Chavez is the champion of the poor in Latin America and has vowed to use Venezuela's oil wealth to bring prosperity to its poor.

At a private meeting this week, Chavez assured members of the Council of the Americas that Venezuela wants to curb oil prices.

"The president [Chavez] is trying to stabilize the price of oil from $22 to $28 [a barrel]," said George Landau of the Council of the Americas - which promotes U.S. business and trade in Latin America - as he hurried out of the Venezuelan Mission after one meeting.

"The president has assured us. We expect the situation to stabilize and give confidence to foreign investors."

Chavez was far less sanguine.

"We are working closely," he said coolly.

"President Chavez is making a lot of noise, but he's been very resistant in telling the other OPEC members to increase production," said Roger Diwan, manager director of Global Oil.

The price of oil per barrel jumped to $35 this week - the highest since the Persian Gulf War.

But Saudi Oil Minister Ali al-Naimi, in Vienna yesterday, said OPEC would "do its part to lower the crude price to within the target band" of $22-$28 a barrel. Also, Iran, traditionally an oil price hawk, signaled it wouldn't seek to block extra production when OPEC meets tomorrow.

Goldstein warns even if the majority of OPEC members agree to increase production by a half-million barrels, it still won't be enough to reverse escalating heating oil and gas prices this winter.

"We already have a low stock of heating oil, and when there are shortages, the United States usually turns to Europe," said Goldstein. "But this time, we'll be competing for the same oil."

http://www.nypostonline.com/news/37953.htm

-- Martin Thompson (mthom1927@aol.com), September 09, 2000


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