Venezuela Threats Oil Soars to $100

Venezuelan President Hugo Chavez warned on Friday that oil prices could soar to 100 U.S. dollars if his country stopped supplies to the United States.

"It's not true that if (an embargo) occurred prices would go up by 11 dollars," Chavez said in Panama, in response to a U.S. government draft report which put possible price hikes at 11 dollars per barrel.

Chavez has repeatedly threatened to cut oil shipments if the United States invades Venezuela, the world's No. 5 oil exporter which provides around 12 percent of U.S. oil imports.

However, he has also insisted that the embargo would take place only in the event of a U.S. attack.

In a related development, Chavez agreed to supply Panama with natural gas and petroleum in a deal signed during his ongoing visit here, just as Panama is experiencing one of its worst energy crises.