[Marxism] Prensa Latina: Venezuela can handle oil price fall

["Fred Feldman" <ffeldman@xxxxxxxxxxxxxxxx>]

Venezuela Can Handle Oil Price Fall

Caracas, Oct 18 oct (Prensa Latina) Venezuela, producer of over three
million barrels a day, attentively follows the swing in oil prices,
while authorities affirm they are ready to face any emergency.

Independent experts affirm the country could face problems in its
economy if the crude goes under 90 or 80 dollars, but the government
proposed to parliament a budget for 2009 based on an average price of
60 dollars per barrel.

According to Venezuelan Minister of Finance, Ali Rodríguez, the
country has a financial margin to cover any descent in oil income,
besides its contingency plans.

Different from other commodity producers also affected by the crisis
originated in the United States, Venezuela has the support of the
Organization of Petroleum Exporting Countries (OPEC), of which it is a
member.

In an interview yesterday with Venezolana de Televisión TV network,
Rodríguez recalled that an OPEC meeting had been moved forward to
October 24 in Vienna and considered possible it would approve a cut in
oil production to defend prices.

The expert, who was Minister of Energy and Oil and former president of
Petroleos de Venezuela, the cut should respond to the possible drop of
demand due to the US difficulties.

US citizens consume 25 percent of the world´s energy output, making
them the biggest consumers of the planet and a market decisive to
world oil demand.

At the same time, Rodriguez assured that Venezuela is ready to face an
emergency, among other factors with an important level of reserves
that nears 40 billion dollars.

Also, Venezuela has achieved important financial agreements with China
and Russia. Only in the case of the Asian country, next year the
accord will reach 12 billion dollars.

In face of the crisis, about which President Hugo Chavez has alerted,
Venezuela deposited the greatest part of its reserves in banks outside
the United States and took measures against significant turbulences in
its financial system.

Another source of strength is the control over the oil industry
decided during the Chavez administration, to put the important oil
wealth at the nation´s service.

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