|Fair Oil Prices|
|Key Words||Cooperation, OPEC, oil prices, prices, profit margins, production, output|
The Venezuelan President, Hugo Chavez, is on a 21-day foreign tour to promote cooperation between nations in the Organization of Petroleum Exporting Countries (OPEC) and those outside. He has visited Saudi Arabia, and is now in Iran, and will travel to Russia shortly.
Oil prices have fallen due to the downturn in the world economy and the effect of the September 11 skyjackings. Motorists also tend to use less gas in the autumn, further depressing prices. These factors have resulted in gasoline prices being 27 cents a gallon lower than at this time last year. Profit margins have fallen as a consequence.
In Tehran, President Chavez announced that Saudi Arabia, Iran and Venezuela had agreed on a strategy to revive oil prices to what he termed "fair" levels. Chavez believes that oil prices should be between $22 and $28 a barrel, rather than the current price of $21.50. The plan is to reduce oil production: Venezuela has already cut its output by 10 percen.
(Updated December 1, 2001)
|Source||The Associated Press, "Venezuelan leader says OPEC will prop up sagging oil prices," USA Today, October 22, 2001|
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