OPEC Should Become a Political Actor against Imperialism: Venez

The Organization of Petroleum Ex****ting Countries (OPEC) should reclaim
its "anti colonial roots" and "convert itself into a geopolitical
actor" in the fight against imperialism and exploitation, Venezuelan
President Hugo Chavez argued at the 3rd OPEC summit in Riyadh, Saudi
Arabia, over the weekend. Opposing him was key US ally, Saudi King
Abdullah, who argued the organization's goal was simply to ensure
market stability and economic prosperity.

In particular, Chavez demanded that OPEC take a stand against US
threats to member nations. "If the United States is crazy enough to
invade Iran, oil prices will shoot up not to US$100 but $200 per
barrel," he warned.

"The basic reason for all this aggression is oil. We have seen it in
the situation in Iraq and the threats against Iran," he added.

However, Saudi Foreign Minister Prince Saud al-Faisal said OPEC
wouldn't take a stand on a possible U.S. invasion of Iran. "These are
issues that can be raised in other forums, not in OPEC," he said.

Chavez also argued that OPEC should lead the way in promoting a
humanist, solidarity-based global economy. While he said $100 a barrel
is a "just price" for developed countries, he proposed that OPEC
countries establish an OPEC bank and sell crude oil to poor countries
at a discounted price.  OPEC "must stand up and act as a vanguard
against poverty in the world" he added.

OPEC, which produces 40% of the world's oil, has only held two full
summits before, once in 1975 in Algiers and then in 2000 in Caracas.

In 1973 Arab members suspended oil ex****ts to countries that sup****ted
Israel in the Middle East war sending oil prices skyrocketing and
producing long lines at gas stations in the US and Europe and
contributing to inflation. Since then former US president Ronald Reagan
sought to bring OPEC "to its knees . . . and almost succeeded," Chavez
said.

However, the Caracas Summit in 2000 was the "rebirth of OPEC," Chavez
said, "We received the presidency with oil at around $10 a barrel and
we are handing it over with oil at nearly $100."

The falling US dollar was also at the center of controversy at the
summit, between Iran, backed by Venezuela, and recently rejoined
leftist member Ecuador on one side and US ally Saudi Arabia on the
other. Iranian President Mahmoud Ahmadinejad told re****ters on Sunday
that despite opposition from Saudi Arabia OPEC member nations showed
interest in changing hard currency reserves into a currency other than
the U.S. dollar, which he described as a "worthless piece of paper."

Oil is traded in US dollars on the world market and the declining
dollar, which is at a 26 year low against the sterling and an all-time
low against the euro, has sparked concerns among OPEC nations, which
are heavily reliant on their oil industries, as it has eroded the value
of their dollar reserves.

Saudi Arabia opposed a move by Iran on Friday to include concerns over
the dollar in the summit's closing statement. An unauthorized 30-minute
broadcast of a closed-door session revealed officials debating the
issue. However, Saudi delegates refused to agree with the measure,
saying the proposal could lead to a "collapse" in the dollar.

Even talking publicly about the currency's decline could result in
further depreciation Saudi Arabia's foreign minister warned.

"There was a proposal from Iran and Venezuela to have a basket of
currencies for the pricing of OPEC oil, but a consensus could not be
reached," said Bayan Jabor, Iraqi finance minister. 

Although the closing declaration did not specifically mention concerns
over the dollar, Iran and Venezuela, with the backing of Ecuador, were
able to secure an agreement that OPEC finance ministers would discuss
the issue before the next scheduled oil ministers meeting in Abu Dhabi,
United Arab Emirates, on December 5.

"We have agreed to set up a committee consisting of oil and finance
ministers from OPEC countries to study the impact of the dollar on oil
prices," Gholam Hussein Nozari, Iran's oil minister, confirmed.

The euro is a much better option than the dollar Chavez told re****ters
on Sunday. The US dollar is in "freefall without a parachute" he added.

The US prints dollar bills with no real economic foundation, Chavez
continued, saying the fall of the dollar signifies, "the fall of
imperialism."

"The day will arrive not only in OPEC, but also in Latin America, when
we will be liberated from the dollar," he declared.

A decision on output levels was also postponed until the meeting in Abu
Dhabi. However OPEC officials questioned whether increased output would
have any effect on oil prices, saying the recent hike has been driven
by dollar depreciation and financial speculation by investment funds,
rather than a supply shortage.

King Abdullah tried to divert the focus away from the dollar debate,
announcing that Saudi Arabia would provide US$300 million toward an
"independent" body "free from political pressures" to research the
impact of the oil industry on the environment. However, he then claimed
"It has been said that oil has an impact on climate. This is false.
Such arguments tend to mix facts with fantasies."

OPEC member countries include Algeria, Angola, Indonesia, Ir!n, Iraq,
Kuwait, Libia, Nigeria, Qatar, Saudi Arabia, United Arab Emirates,
Venezuela and Ecuador. Brazil has also expressed interest in joining
after discovering im****tant new reserves of oil. 

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