RIYADH, Aug 5: Venezuelan President Hugo Chavez is once again generating ripples in the already stormy energy markets. He is apt at doing so and probably enjoys that too. Already a nemesis to Washington, the entire last week he kept endeavouring -– with measurable success -– to forge an anti-US front.

Mr Chavez now seems to be drumming up another beat -– fostering closer operational ties among all the oil producers -– interestingly including Russia to ensure fair oil prices in the global crude markets. But what is a fair oil price?

Last week while visiting Moscow, he called for Venezuela, Russia and other major oil exporters to work toward maintaining `fair’ oil prices. Reportedly he also discussed oil prices with Russian President Vladimir Putin. “Russia, Venezuela and Opec are interested in maintaining oil prices, fair oil prices, and in maintaining production at an appropriate level to assure the supply of oil to the world,” Chavez said in comments broadcast by Venezuela's state TV channel.

Russia is not a member of Opec but is a major oil producer, second only to Saudi Arabia. Mr Chavez also said Venezuela, Russia and Opec "maintain an excellent level of coordination” regarding oil prices. That was news to many.

What is but a ‘fair price’ for oil? Mr Chavez has his own vision and perception about it. At the previous Opec meeting in Caracas, the hawk in Chavez suggested that the oil cartel trim production and establish a minimum price bar of $50 a barrel, to trigger reaction.

And his oil minister Rafael Ramirez goes more precise. He says that a $100 plus price could be fair as, in real terms; prices today are lower than in 70s and 80s. "The prices we are seeing today are in today's dollars,” Ramirez said last week. "For us to have the same amount of revenues that we had in the 70s, you'd have to put the oil price close to $100 a barrel.

And Mr Chavez seems to be working overtime to achieve his stated objectives, achieving a fair price for oil and fostering an anti-US front.

His country is already a major player on the global energy map. It is the world's fifth-largest oil exporter and a major supplier to the US market, accounting for 11 per cent of US imports. The entire last week, he has been visiting countries, regarded by the administration in Washington as hostile to its interests. The visit took the verbose speaker, the robust, former paratrooper, to Cuba, Belarus, Qatar and Russia. In Moscow, he also finalised major arms deals despite strong opposition from Washington. Later he arrived in Vietnam, a country that stood up to the US onslaught once, and signed a number of agreements, including an energy cooperation agreement with President Nguyed Minh Triet. Vietnam has considerable oil and gas reserves in South China Sea, but so far lacks refining capacity.

Over the last few years, Hugo Chavez has emerged as among the major movers and shakers of the oil markets. There are indeed reasons for his rise on this chart. He is among the few people who are conspicuous because of the influence they wield today on the global energy map. His left wing policies, his closeness to Fidel Castro and his joining up with Moscow on various issues are only some of the major concerns of world’s largest energy consumer, the United States. Many also credit Hugo Chavez for the new wave of nationalistic energy politics now in vogue in some countries of South America. In countries such as Bolivia, the new incumbents, elected democratically, copying Chavez have started stressing on nationalising the national energy assets. This was done despite the expressed reservation of the US. In the process, the global majors were asked either to pay up or lose the rights to the energy assets. Rules of the game are undergoing serious changes.

Until the mid 90s, Venezuela was a known quota buster within Opec. However, once the leftist Chavez was inducted into power, he strategically worked on fostering closer relationship with fellow oil producers -– mainly Saudi Arabia. In 2000, after only a year of coming into power in Caracas, Mr Chavez hosted an Opec summit, only the second in the cartel’s 40 years plus history, giving a call for much closer economic cooperation between the Opec member countries. After all nationalistic priorities commanded so.

Major Opec producers welcomed the change whole heartedly. Insiders say, oil minister, the diminutive Ali Al-Naimi, worked tirelessly towards forging closer relations with this otherwise recalcitrant producer within Opec. Hence when Mr Chavez visited Saudi Arabia for the first time, despite ill health, King Fahd made it a point to welcome him on the tarmac personally, even while on wheel chair. That underlined the importance of the visit.

And according to some analysts, the world was already bracing up for the ‘fair prices’ that Mr Chavez and his team were striving for today. Many say despite the problems it may spring up, the global economy would still be able to sustain it. The world has managed the high oil prices, now flirting at around $75 a barrel, with comparative ease. And if the higher oil prices have not derailed the global economic growth and have not pushed it into stagflation, as in the past, there are reasons for that too.

In the 80s in the aftermath of the Iranian Revolution, when the world was struck with the ‘second oil shock’ crude was contributing eight per cent to the global GDP. Today its contribution to the global GDP is less that two per cent, almost one-fourth of the value in the 80s. The fact today is that oil has lost its significance considerably in absolute terms over the years. And despite increasing consumption volume world wide, due to the emergence of new, yet inefficient, economies as far as energy consumption patterns were concerned, the current bull ride, would contribute to further lessening the role of oil in the global GDP, one can’t help but concede. A still ‘fairer price’ appearing an ultimate eventuality today, may not herald another round of depression, as many had been predicting, once be able to say with a degree of confidence.