Chavez Seeks Mexico's Help in Raising Oil Prices Via NY Transfer News * All the News That Doesn't Fit source - Milt Shapiro Chavez seeks Mexican president's help in raising oil prices By JOHN RICE The Associated Press 10/26/01 10:46 PM LEON, Mexico (AP) -- Literally singing Mexico's praises, Venezuelan President Hugo Chavez met with Mexican President Vicente Fox on Friday in central Mexico to seek his cooperation in halting a slide in oil prices. "It would be catastrophic if the price of petroleum fell again," Chavez told reporters in Leon, an industrial city a few miles from Fox's ranch. The two leaders met for only an hour in what amounted to a courtesy call following Chavez's tour of Europe. Neither spoke to the press afterward, but they issued a statement saying they discussed oil, the war on terrorism, the need for peace and growing trade relations between their two nations. "The relations between Mexico and Venezuela are characterized by a profound friendship and by growing levels of cooperation," the statement said. There was no word of any specific agreement on the oil issue. The quick meeting was in contrast to the warm informality of Chavez's first visit to Mexico immediately after Fox's inauguration in December, when Fox invited the Venezuelan leader on a previously scheduled tour of southern Mexico. Chavez was buoyant when he arrived in Leon, and even sang a few bars of popular Mexican songs, including "Mexico Lindo y Querido," or "Beautiful and Beloved Mexico," and Venezuelan diplomat Luis Nino said both leaders left their meeting "very happy, very enthusiastic." A member of the Organization of Petroleum Exporting Countries, Venezuela is trying to convince non-OPEC members such as Mexico to cooperate in reducing supplies by at least 1 million barrels a day. Chavez said current oil supplies exceed demand by about 1.5 million barrels a day. "The least that we hope for is that they freeze" output if OPEC agrees on cuts during a Nov. 14 meeting in Vienna, Austria, Chavez said. Mexico in recent years was a leader in persuading non-OPEC states to work with the oil cartel in controlling production. But Fox's government has not taken a leading role on oil since he took office Dec. 1. Chavez noted that his country budgeted for an oil price of $20 a barrel this year, and so far average prices have been slightly above that. Venezuela depends on oil for 40 percent of government revenues and 70 percent of exports. Mexico, too, depends heavily on oil sales. Four weeks of declining prices have left oil currently selling for less than $17 a barrel. He said that if all producers exported to their capacity, prices could slide to $8 a barrel, costing OPEC countries $70 billion a year and non-OPEC countries $180 billion. Chavez recently toured Europe, the Middle East, Russia and Canada seeking support for output cuts. OPEC now has an agreed-upon production of 23.2 million barrels a day. ================================================================= NY Transfer News Collective * A Service of Blythe Systems Since 1985 - Information for the Rest of Us 339 Lafayette St., New York, NY 10012 http://www.blythe.org e-mail: nyt@blythe.org ================================================================= nytcamer-10.28.01-00:06:36-9797