The New Nation - Internet Edition

AP, Caracas

President Hugo Chavez says he'll be happy if oil prices stabilize between US$80 and US$90 dollars a barrel.

Prices for light, sweet crude fell to US$71.85 a barrel on the New York Mercantile Exchange Friday, after reaching record highs of over US$140 earlier this year. Independent analysts say Venezuela cannot maintain high levels of government spending if prices stabilize below US$80 a barrel. Oil accounts for 94 percent of Venezuela's exports and roughly half the government's budget. But Chavez says Venezuela has US$100 billion in foreign currency and other reserves to weather the world financial crisis.

He said Saturday oil prices of US$80 would be sufficient.