Venezuela embargo would push oil to $100 - Chavez

CARACAS, Venezuela, June 24 (Reuters) Oil prices would rise between 20 dollars and 30 dollars per barrel if Venezuela halted crude sales supplies to the United States, Venezuelan President Hugo Chavez said on Friday, responding to a U S government draft report that predicted an 11 dollars per barrel increase.

Chavez, a firebrand leftist locked in a war of words with the Bush administration, has repeatedly threatened to cut oil shipments if the United States invades Venezuela, the world's No 5 oil exporter.

The threats led U S Sen. Richard Lugar (R-Indiana) to request that the U S Government Accountability Office draft a report on the effect of a potential cutoff of oil supplies from Venezuela, which provides around 12 per cent of U S oil imports.

''It's not true that if (an embargo) occurred prices would go up by 11 dollars,'' Chavez told a news conference during an official visit to Panama to promote energy cooperation. ''No, it would increase by more than twice what it says here. Prices would reach 100 dollars. They would pass the 100 dollars barrier.'' U S crude settled 3 cents higher at 70.87 dollars a barrel on Friday.

Chavez, a close ally of Cuba and Iran, has promised a socialist revolution to end poverty and promote Latin American integration in response to what he calls U S imperialism.

But U S leaders describe him as an authoritarian who threatens regional stability and uses his oil wealth to meddle in the affairs of his neighbors.

The Senate Foreign Relations Committee on Thursday held a hearing to discuss the security of oil supplies from Venezuela.

Chavez has insisted that an oil embargo would take place only in the event of a U S attack, in which case ''there would not be oil for anyone.'' But he is also seeking to reduce reliance on U S markets by exploring new markets like Brazil and China and wooing oil investment from other producer nations like Iran and Russia.

He has offered oil supplies on preferential terms to Caribbean nations through an accord called Petrocaribe, and this week offered to include Panama in the accord during the official visit.

The United States imported an average of 1.17 million barrels of oil per day from Venezuela in April, according to U S Energy Department statistics.

Venezuela's energy authorities say the country produces 3.3 million barrels per day, but market observers say the nation's output is only 2.6 million barrels per day.

REUTERS VJ BST0501