Venezuela and Iran support OPEC cuts - Chavez

CARACAS, Jan 14 (Reuters) Venezuela and Iran will back cuts in OPEC output to oversupplied world markets in order to support prices, Venezuelan President Hugo Chavez said.

He blamed the United States, the archfoe of Tehran and Caracas, for undermining the significance of the OPEC cartel to bring down oil prices, which have tumbled 15 percent this year on an unusually mild US winter.

''We agreed this afternoon to increase our coordinated efforts in OPEC and with the major oil producers outside OPEC to safeguard the price of our main product,'' Chavez yesterday said at a meeting with Iranian President Mahmoud Ahmadinejad.

''Today we know there is too much oil in the market and we will support decisions taken to cut production and safeguard the oil price,'' he added.

He added the two countries had agreed to establish a 2 billion dollar fund for projects they are involved in across the developing world.

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