Chávez: Opec should be an engine for socialist revolution

Source: Energy Digital

Date :19/11/2007 11:55:04

“an Opec for geopolitics, an Opec for revolution” the Venezuelan President continued however, this fell on deaf ears, with the newly enlarged 13-member group clearly divided on key issues.

The summit closed on Sunday, leaving open ended questions such as the use of the dollar for oil trading and the cartel's willingness to increase production.

Climate concern

Releasing its official declaration at the end of the third summit, the cartel pledged reliable supplies, urged world peace to help stabilise prices and included a commitment to help fight global warming.

Kuwait, the United Arab Emirates and Qatar each said they would pledge $150 million towards research into climate change and the environment, with Saudi Arabia, pledging $300 million.

Opec, which pumps more than 40 percent of the world's oil, also called on oil-consuming nations to adopt energy policies that do not discriminate against oil, with leaders accusing the US and Europe of distorting energy markets by subsidising more expensive forms of energy such as renewables.

Pricing proposal

Formally, there was no reference to a proposal to start to price oil in currencies other than the waning dollar. However, during a closed-door session on Friday officials were caught debating the issue on camera.

During the broadcast, Iran and Venezuela argued that the declaration should express the cartel's formal concern over the weak dollar. But the Saudis vetoed the proposal, which they said could lead to a “collapse” in the dollar.

Supply

Opec leaders have said that they would discuss the cartel's output policy at a meeting in Abu Dhabi early next month.

In the run-up to the two-day summit, Opec had been under pressure to increase supplies to help cool record prices of nearly 100 dollars a barrel.

OPEC last decided in September to raise output by 500,000 barrels a day, effective November 1.

November 19, 2007