after such a massive production cut the oil market has failed to deliver .
VZ oil only $.78 up.
CARACAS -(Dow Jones)- The average price for Venezuela's basket of crude oil and refined products stood at $32.14 a barrel Friday, roughly half the level needed to fund next year's budget plan.
The price rose $0.78 to $32.14 a barrel the week ending Dec. 19, up from $ 31.36 on Dec. 12, the Oil Ministry said Friday.
The new price level is the second lowest weekly average recorded in 2008, in a dramatic fall that is putting major fiscal pressure on President Hugo Chavez's plans for the coming year.
The average price for the year running stands at $88.74 per barrel, still higher than last year's average of $64.74 a barrel, figures show.
Falling oil prices have quickly become Venezuela's main problem as the year draws to a close, because the country relies on oil revenues to cover half of the government's outlays.
The state's planned 2009 budget is set at $78 billion, based on a $60-a-barrel average price. Venezuela's finance ministry is now pondering possible scenarios for a spending cut early next year.
Petroleos de Venezuela, SA, PdVSA, is also reviewing energy projects to determine which ones can be shelved until oil prices improve.
The Organization of Petroleum Exporting Countries, OPEC, approved a 2.2 million-barrel-a-day output cut this week, but so far there is little indication such a reduction will be enough to stem the decline.
-By Raul Gallegos, Dow Jones Newswires; +58-212-905-6338; raul.gallegos@ dowjones.com
