Riyadh: OPEC leaders began a summit today with Venezuelan President Hugo Chavez issuing a chilling warning about oil prices in a speech that also urged the group to be actively involved in foreign policy.

The fiery leftist leader warned in an opening speech that crude prices could double from their current already- record level of near USD 100 a barrel if the US attacked Iran or Venezuela.

"If the US was mad enough to attack Iran or aggress Venezuela again the price of a barrel of oil could reach USD 150 or even USD 200," he said.

He urged assembled leaders from the Organisation of Petroleum Exporting Countries, meeting for only the third time in the cartel's 47-year history, to club together for geopolitical reasons.

"The basis of all aggression is oil. It is the underlying reason," Chavez said, pointing to the war in Iraq and US threats against Iran.

"Today OPEC stands strong. It is stronger than it has ever been in the past," he said. "OPEC should set itself up as an active geopolitical agent."

His remarks were tempered by King Abdullah of Saudi Arabia, the OPEC kingpin and key US regional ally, who said that "oil is an energy for construction and must not become an instrument for conflict."

OPEC's 12-strong membership is dominated by pro-Western Gulf states but includes an anti-US bloc of Iran and Venezuela.

Source : PTI