10-26-07, 12:51 pm

Venezuelan President Hugo Chavez said U.S. foreign policy is in part responsible for soaring oil prices and predicted that crude will continue its upward spiral rapidly closing in on the 100 US dollars per barrel benchmark.

'Oil is headed for 100 US dollars' Chavez said. 'And if the United States keeps threatening oil-producing countries or trying to destabilize us like they did in Iraq ... the price of oil is going to continue rising'.

Chavez made his remarks following Washington’s announcements of further economic sanctions against Iran for alleged support of terrorist groups and having members of elite forces infiltrated in Iraq attacking US personnel.

Oil futures closed at a new record of 90.46 US dollars a barrel Thursday on news that OPEC production increases will be slow in coming, and output quotas won't likely be raised at next month's meeting of the Organization of Petroleum Exporting Countries. The Turkey/Kurds conflict and possible supply shortages in Nigeria have also contributed.

OPEC is scheduled to meet next November 11/12 in Ryad, Saudi Arabia. The Venezuelan president insists that in recent years “it’s OPEC that has helped stabilize oil prices and supply”.

Chavez, who has warned Washington that any attack on his allies in Iran would trigger a military conflict worse than Iraq accused U.S. President George W. Bush of 'threatening World War III with atomic weapons.'

'It's enough for him to be taken to the madhouse,' Chavez said.

From MercPress