Chavez rules out return to cheap oil

Interesting feature from the BBC's Meirion Jones of BBC Newsnight:

If you thought high oil prices were just a blip think again — Venezuelan President Hugo Chavez has ruled out any return to the era of cheap oil. In an interview with BBC Newsnight's Greg Palast, Mr Chavez — who is due to host the Opec meeting on 1 June in Caracas — said he would ask the oil cartel to set $50 a barrel as the long term level.
During the 1990s the price of oil had hovered around the $20 mark falling as low as $10 a barrel in early 1999. "We're trying to find an equilibrium. The price of oil could remain at the low level of $50. That's a fair price it's not a high price," Mr Chavez said.
He will have added clout at this Opec meeting. Analysis by the US Department of Energy (DoE) — seen by Newsnight — shows that at $50 a barrel Venezuela — not Saudi Arabia — will have the biggest oil reserves in Opec.
...Mr Chavez's increased muscle will not go down well in Washington, which is deeply opposed to his government. Ironically, by invading Iraq, George W Bush has boosted oil prices and effectively transferred billions of dollars from American consumers to the Venezuelan government. Up to $200m a day — half of it from the US — is flooding into Caracas.