Venezuela To Supply Cheap Oil To Argentina

Venezuela on Monday agreed to supply Argentina with cheap diesel oil at a meeting between President Hugo Chavez and his Argentine counterpart Nestor Kirchner in the southern Venezuelan state of Bolivar.

Venezuelan Foreign Minister Ali Rodriguez said Venezuela had agreed to supply five million barrels of diesel oil each year to Argentina at a favorable price.

They also decided to work on a project to construct pipelines to pump natural gas to Argentina, said Rodriguez.

Meanwhile, Argentina pledged to back Venezuela's bid to become a full member of the Common Market of the South (Mercosur), which groups Argentina, Paraguay, Brazil and Uruguay. Venezuela is an associate member of the group.