LISBON, Oct 20: Venezuelan President Hugo Chavez said on Friday that Opec oil producers could lower the floor of their target price band, the clearest sign yet that a weak global economy will force the cartel to give up its high price strategy.

In a rational calculation, and we have no interest in pushing prices up beyond what we consider a fair price, the band could be between $18 and $22, Chavez told a news conference during the second day of a visit to Portugal.

It is part of the recalculations which are going on in Opec countries and non-Opec countries, Chavez added.

Venezuela’s Energy Minister Alvaro Silva told Reuters afterward that the president was referring to the lower level of Opec’S current target band of $22-28 a barrel for its reference basket of crudes.

Oil prices have sunk 25 per cent since last month’s attacks on the United States as global economic slowdown hurts fuel consumption. The slide has undermined Opec’s success this year in keeping prices up by cutting supply as soon as demand starts to flag.

Oil traders will be watching closely for reaction from Opec’s two biggest producers Saudi Arabia and Iran. Chavez will visit both countries this weekend, the latest leg of a three week tour of Europe, North Africa, the Middle East and the Americas.

Venezuela’s outspoken President has proved more willing than other Opec members to admit the cartel’s struggle to defend strong oil prices.

Saudi Arabia, the world’s largest oil producer, has been particularly careful to insist that the cartel is not giving up its $25 a barrel target.

Opec is finding it politically difficult to cut supplies now as the US economy teeters toward recession and Washington seeks support for its response to last month’s attacks.

Opec’s crude oil basket price fell over half a dollar to a fresh two-year low of $18.54 a barrel on Thursday, the 19th straight day under the $22 lower end of the cartel’s price band.

Iranian Oil Minister Bijan Zanganeh said on Friday that Opec wanted to wait for more consultations with exporters outside the cartel before reducing production further. Opec ministers will meet on November 14.

Venezuela’s Chavez said he hopes to secure supply co-operation from Russian President Putin when he travels to Moscow in coming days. Opec producers are concerned about rising production from the former Soviet Union. Russia will continue to coordinate with Opec on oil issues, Chavez said.—Reuters