MercoPress. South Atlantic News Agency

“Acceptable price” for oil barrel, 50 US dollars.

Venezuelan president Hugo Chavez said today in Moscow that 50 US dollars per barrel of oil is “an acceptable price” adding that OPEC (Oil Petroleum Exporting Countries) must make sure the price does not drop below 30 US dollars.

However President Chavez said it was essential to keep the current level of oil production, without adding or taking, and then watch the market's reaction.

Analysts noted that this stance does not necessarily coincide with Venezuelan Energy Minister Rafael Martínez statement last week when he said Venezuela was prepared to consider a Teheran proposal to reduce production levels next December, and so forcing a further increase in the price of oil.

But from Indonesia OPEC president Purnomo Yusgiantoro forecasted that a weakened oil demand will force prices down during the second half of next year.

"I believe that in the second quarter of 2005, demand will begin easing and this will have an impact on prices. I think prices will drop sometime during the second half of the coming year", indicated Mr. Yusgiantoro during an energy seminar in Jakarta.

"The current high price of oil has nothing to do with market fundamentals and is rather the consequence of geopolitical events", emphasized OPEC's president.