MercoPress. South Atlantic News Agency

Venezuela pushing for higher oil prices.

With the oil market breaking records day after day, (almost 47 US dollars this Wednesday) Venezuela is sponsoring taking the current OPEC price band from 22/28 to 28/35 US dollars per barrel.

The eleven member OPEC is scheduled to meet in Vienna next September and Venezuela would like to see the new price band operating at the beginning of 2005.

"We believe the current price band is too low given the world oil demand and the supply problems caused by the Middle East crisis", said Venezuelan delegate in OPEC Ivan Orellana.

However other OPEC members, Iran and Saudi Arabia, do not support the Venezuelan initiative and would like the price band to remain at its current level.

Mr. Orellana who is currently in Vienna preparing the agenda for the ministerial meeting of September 15 indicated that OPEC in the next three months "could increase production by 1,5 million barrels per day", mostly from Saudi Arabia, and in six months make that volume reach 2,5 million barrels per day.

Venezuela currently produces 2,95 million barrels per day and could increase supply by 470,000 barrels in six months, revealed Mr. Orellana.

OPEC's production target currently stands at 26 million barrels per day. The organization estimates it can increase daily production by half a million barrels next September and forecasts international oil demand in the fourth quarter will reach 28,25 million barrels.

Venezuela has the largest oil reserves outside of the Middle East and is the world's fifth producer, supplying 15% of United States crude imports.

Venezuelan president Hugo Chavez who last Sunday defeated a recall referendum on his mandate has benefited from the increased oil prices and according to opposition sources had invested lavishly in "social programs" ahead of the voting.