Venezuela's Chavez Expresses Desires to Act on Oil Prices

President Hugo Chavez said Monday he wants to take measures to keep oil prices between $80 and $100 a barrel to stabilize the market.

He said the move will prevent prices from jumping abruptly as they have recently between $150 and $50 a barrel — creating "terrible uncertainty."

"We believe this would be a fair price for oil," he said.

Venezuela depends on oil for 94 percent of exports and roughly half the government's budget.

The socialist leader said Venezuela is evaluating the effects of falling oil prices, but has plenty of international reserves and slush funds to weather the financial storm. Venezuela will not cut high levels of social spending, he said.

But Chavez said Venezuela could implement some administrative changes if prices stay at their current levels or below throughout 2009. Prices for light, sweet crude closed at $54.50 on the New York Mercantile Exchange Monday.

Oil Minister Rafael Ramirez said Sunday that OPEC should cut oil production by 1 million barrels per day at its informal meeting in Cairo Saturday, and implement these cuts before the end of the year.

The oil cartel cut output by 1.5 million barrels a day last month to boost prices. It will hold its next official meeting on Dec. 17

Author: Jo Amey