MercoPress. South Atlantic News Agency

Oil should not fall below $60 a barrel

Venezuelan President Hugo Chavez said on Tuesday the price of oil should not fall below $60 a barrel, two days after the OPEC country cut its production to stem price declines.

Oil has tumbled more than 20 percent from peak levels of close to $78 per barrel in July, sparking concerns among some producer nations of a prolonged slump in oil prices.

Chavez said he had ordered Venezuela's cut of 50,000 barrels per day because oil prices had fallen to $65 a barrel, in an apparent reference to world crude prices -- as opposed to Venezuela's own cheaper crude.

"The price of a barrel of oil today should not fall below 60 dollars. That is a fair price," he said in a speech promoting Venezuelan scientific programs.

Only three days ago, Chavez a fair price was $50 a barrel. But at that time it was not clear if he was talking about world or Venezuelan domestic prices.

Venezuela's own crude, which is generally below-average quality, has fallen toward $50 a barrel in recent weeks.

Venezuela, the world's No. 5 crude exporter, and fellow OPEC country Nigeria have cut output in recent days but markets have generally shrugged off the move waiting to see if larger producers, particularly Saudi Arabia, will follow suit.