United States Oil Fund (USO)

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Venezuela's Chavez eyes new oil cartel
(AFP) – 1 day ago
CARACAS — Venezuelan President Hugo Chavez proposed creating a new oil exporters group parallel to OPEC that would include only the "giants" of global petroleum producers.

Chavez made the comments on Thursday, while hosting Russia's Deputy Prime Minister Igor Sechin and Energy Minister Sergei Smatko, saying the two countries could be part of such a super-cartel.

"I had an idea, create a new organization... of petroleum giants," Chavez said during a cabinet meeting broadcast on radio and television with the Russian officials present.

"We are not more than four or five" countries, he added.

He said that "Russia and Venezuela are two of the oil giants of this planet" and that such a super-cartel could co-exist with the Organization of Petroleum Exporting Counties.

The approach "would not at all mean that OPEC would suffer. OPEC is an organization with a history, with a profile, with a path, and Venezuela has played and will play a very important role," added Chavez.

A founding member of OPEC, Venezuela produces an average of three million barrels per day. It was the world's eighth biggest oil producer in 2009, according to the International Energy Agency.

Venezuela said in January it had dethroned fellow OPEC member Saudi Arabia to become the nation with the largest proven crude oil reserves in the world, at nearly 300 billion barrels.