Chavez insists oil will touch $75-$80

28/05/2009

Hugo Chavez has claimed that crude oil prices will reach a price level of between $75 and $80 a barrel in the coming weeks.

Reuters reports that his comments came after a meeting with fellow head of state Luiz Inacio Lula da Silva, president of Brazil.

Mr Chavez cited Saudi Arabia's King Abdullah in comments made to reporters following the meeting, echoing the sovereign's remarks that $75 to $80 a barrel would be a stable price for oil.

"King Abdullah has said the fair price of oil is between $75 and $80 per barrel - that's where oil prices should be heading," he averred.

If oil reaches this price range, the cost of heating oil, gasoline, red diesel and other distillates is also likely to rise, while prices may also be affected by seasonal demand changes.

Wholesale gasoline prices have risen on the New York Mercantile Exchange in recent weeks as the US summer driving season draws nearer.