Chavez defends oil producing nations for reluctance to boost output

Venezuelan President Hugo Chavez defended the reluctance of oil producing nations to further boost output, saying world crude oil supply in August exceeded demand by almost 2 mm bpd. Chavez blamed slow refining activity, high gasoline taxes in industrialised countries and market speculation -- not lack of supply -- for the spike in fuel prices.
Venezuela's oil ministry estimates that world daily oil supply in August was 77.8 mm barrels compared with demand of 76 mm barrels, Chavez said. The International Energy Agency "says that OPEC can increase production by 2.2 mm bpd. We think that should be considered with caution because it is not true that supply is below demand," Chavez said.

"OPEC has increased production this year much more than necessary," he added. OPEC has increased production three times this year to some 3.2 mm bpd in a failed bid to cool petroleum prices, which have soared to 10-year-highs this month.
Motorists and other fuel consumers staged massive protests in Europe against the rising costs. Although OPEC insists factors outside production are to blame for high oil prices, Venezuela's oil minister Ali Rodriguez has said the group would consider raising output a fourth time this year. OPEC will meet on Nov. 12 to reassess market conditions.
Rodriguez said that OPEC may review its output policy at its heads of state summit in Caracas.