CNN
October 14, 2001

Sliding oil prices, Chavez and Gadhafi meet

 
                 CARACAS, Venezuela (AP) -- President Hugo Chavez met with Libyan
                 leader Moammar Gadhafi in Tripoli on Sunday to discuss sliding oil prices,
                 the official Libyan news agency JANA reported.

                 Chavez was in Tripoli for a few hours before heading to Brussels, Belgium, a
                 presidential palace spokeswoman said. No other details were immediately available
                 about Chavez's visit to Libya, which was a last-minute addition to a 17-day tour of
                 North Africa and Europe.

                 On Saturday, Chavez visited Algeria, where he discussed the oil market with
                 Algerian President Abdelaziz Bouteflika. Chavez said he is on a campaign to defend
                 oil prices, which have fallen steadily this year despite three output cuts by the
                 Organization of Petroleum Exporting Countries.

                 Chavez said he may also visit Iran and Saudi Arabia during his foreign tour.
                 Venezuela, Algeria, Libya, Iran, and Saudi Arabia are all OPEC members.

                 "We agree on the need to take extraordinary measures to confront the threat of an
                 eventual fall in oil prices," Chavez said after meeting with Bouteflika.

                 On Saturday, Chavez said he would like to see prices return to OPEC's target range
                 of $22 to $28 a barrel and is considering calling for an emergency meeting of
                 OPEC heads of state.

                 The average price of crude oil in OPEC countries hit a two-year low of $19.61 per
                 barrel last week amid declining demand for oil and a slumping global economy.

                 OPEC's price band system calls for a production cut of at least 500,000 barrels a
                 day if prices stay below $22 a barrel for 10 consecutive days. But the cartel has
                 been reluctant to reduce output in the aftermath of the September 11 terrorist
                 attacks in the United States.

                 Chavez has made promoting unity in OPEC a cornerstone of his foreign policy. The
                 United States warily watches Chavez's ties to Libya and Iraq, which are on
                 Washington's list of countries that sponsor terrorism.

                 Venezuela insists those relations are purely based on oil. Chavez, who has
                 condemned the September 11 attacks and promised to maintain a steady oil supply
                 to the United States, has said Washington's fight against terrorism will not affect his
                 relations with OPEC countries.

                 Chavez will also visit Austria, Portugal, Norway and Britain before returning to
                 Venezuela on October 24.

                  Copyright 2001 The Associated Press.