OPEC says No to NATO. Chavez backs Gaddafi in OPEC Spat
OPEC will not increase oil production as long as NATO continues to bomb Libya reported the Minister of Energy and Petroleum of Venezuela Rafael Ramirez, who is a member of OPEC.
"We can not give NATO carte blanche to bomb oil-producing countries," he said.
Ramirez warned oil producers of the possibility of the repetition of the events of 1998, when in the wake of the economic crisis, the Asian oil market was so saturated that the price fell below the level of 10 dollars per barrel.
The Venezuelan minister believes that the economically developed countries deliberately try to destabilize the countries in OPEC because of those advocating a fair price for oil.
Chavez backs Gaddafi in OPEC spat
Continued bombing of oil-rich Libya by NATO forces will see Venezuela refuse to support any increase in oil production quotas from OPEC, a report claims.
Eoin O'Cinneide 27 July 2011 08:15 GMT
The stance from Caracas is yet another sign of the close alliance between Venezuelan President, Hugo Chavez and the embattled Libyan leader, Muammar Gaddafi.
NATO forces continue to strike Gaddafi-linked military assets in the North African country as rebels fight for control of, amongst other areas, the key eastern oil town of Brega.
This military action has led Venezuela to vow a block on any call from oil cartel OPEC for a ramp-up in production.
“We are not going to do that; Venezuela will not do that,” Oil Minister, Rafael Ramirez, vowed, according to news wire AFP.
The oil-rich South American nation was not going to engage in any production hike “above all because we cannot give a blank check to NATO so that it can bomb any nation over oil,” AFP quoted Ramirez as saying.
“What is happening is extremely serious¿Right now the deciding factor is the economic situation, as well as what is going on in Libya,” he continued.
Published: 27 July 2011 08:15 GMT | Last updated: 27 July 2011 08:16 GMT
