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Speculation pushing up oil prices: Venezuela Minister

CARACAS (Venezuela): Venezuela’s Petroleum and Energy Minister Rafael Ramirez Carreno has said nothing but “sheer speculation” was behind the sharp rise in crude oil prices in the international market. A lot of oil was available in the market but this was not reflected in its price.

“There is a lot of crude oil available in the international market. The supplies are adequate and this (price rise) is a result of sheer speculation,” Mr. Rafael said.

Venezuela is the only Latin American nation that is part of the OPEC and currently sits on huge resources of oil and gas, almost equal to the world’s leading oil producer, Saudi Arabia.

Speaking about the maiden entry of the Indian government and its companies into the Venezuelan oil sector, Mr. Rafael, a confidant of President Hugo Chavez, said Petrolos De Venezuela S.A. (PDVSA) was looking at a stronger working relationship with Oil and Natural Gas Corporation Videsh Limited (OVL) and proposed to set up an integrated upstream project.

“India has a huge capacity for refining oil and also the technology. We will be looking at this huge option in the coming years and I promise that supplies to India will keep on increasing after this solid beginning,” he said.

Mr. Rafael said OVL had made a good start and promised it would get preferential treatment in the oil and gas sector, especially after Mr. Chavez gave the “political go-ahead” for strengthening this relationship.

The Minister indicated that his country was about to sign a major agreement with India for training its personnel in the petroleum sector. “I positively also look at the possibility of cooperation in supply of goods, services in oil related companies. We want to establish a strategic relationship with India as it is a huge energy consumer and we could supply oil for its needs. The technical teams will now work on further relationships including setting up of petrochemicals complex and City Gas Distribution (CDG) projects by the Gas Authority of India Limited (GAIL),” he said.

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