Venezuela's Chavez Says Oil Could Reach $300

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Story Published: Jul 13, 2008 at 9:48 PM MDT

Story Updated: Nov 21, 2008 at 12:06 AM MDT

By Todd Kunz

MARACAIBO, (Reuters) - Venezuelan President Hugo Chavez says oil prices could hit $300 per barrel if U.S. oil company Exxon Mobil again freezes Venezuelan assets in a dispute over a nationalized oil project.

Exxon won court orders freezing 12-billion dollars in assets held by Venezuelan state oil company PDVSA after the OPEC nation took over a multi-billion dollar oil project, heightening tensions with the United States and helping to raise oil prices.

A London court later overturned Exxon's temporary asset freeze, but Chavez says the company could seek further action against Venezuela.

"If they freeze us there will be no more oil for the United States, and the price will go to $300," Chavez says during a televised meeting with Caribbean and Central American leaders.

Chavez also adds oil prices are being influenced by a "speculative bubble", the collapse of which could send prices as low as $70 per barrel.

This contrasted with his Saturday statements that geopolitical tensions, particularly the threat of an invasion against Iran, could push oil prices to $200 per barrel.

"Years ago I said oil was going to go to $100 per barrel, now it looks like it is headed toward $200," he says.

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