Claude Mandil, chief of the International Energy Agency had a clear message to deliver even before he arrived in Saudi Arabia last week. Barely a day earlier, while in Doha, he had made known his views on the strengthening oil market that he described as “bad for every body.” He stated that OPEC “knows what it has to if they want to deal with the situation”.

IEA was definitely putting the onus on the OPEC. It wanted Saudi Arabia, the largest oil producer within OPEC, to know how the developed world was viewing the rising global oil prices. Mandil met with the Saudi Oil Minister Ali Al-Naimi and other senior Saudi officials. At the end of the meeting, the Saudi oil minister reemphasized, “The Kingdom constantly insists on the necessity of maintaining oil market stability in the interest of both, the consumers as well as producers.”

Was Mandil here to put pressure on the Kingdom, before the crucial OPEC meeting yesterday, so as to ensure that the views of the developed world are taken into account while decisions were being made in Vienna?

Former US Energy Secretary Bill Richardson used to dash to Riyadh before any important OPEC meeting. This time, the US energy secretary seems to have been replaced by the IEA director.

The intensity of the US interest in getting cheap fuel to keep its economy booming is not only felt here in the Arabian Peninsula. The poor Venezuelans also feel the heat. In an interview with the New York Times published on March 9, Venezuelan President Hugo Chavez complained of US interference in the internal affairs of the country. Chavez does not toe the US line in making decisions on oil and oil related affairs. He warned that any attempt to overthrow him would raise the international oil prices to over $50 per barrel. Chavez added he “would not tolerate” any US-led attempt to force his deposition.

As the world’s fifth largest oil exporter, Venezuela provides about 1.5 million barrels each day to the United States, which accounts for nearly 15 percent of the latter’s oil imports. Chavez has recently threatened to cut off Venezuela’s oil exports to the United States if his country is invaded or blockaded by the latter.

The Venezuelan leader also accused the United States of backing the failed coup that attempted to oust him in April 2002. Analysts felt the decision of Chavez to work closely with Saudi Arabia and OPEC member countries to ensure oil market stability and achieve just and equitable return to the oil producers on their precious commodity was one of the major reason for the US support of the coup in Venezuela.

Oil and politics definitely go hand in hand!