Nov. 12 (Bloomberg) -- Venezuelan President Hugo Chavez said his country isn't immune to a global recession and will be affected by falling oil prices should they remain low for a prolonged period of time.

Chavez said Washington was to blame for the world economic slump that has contributed to a decline in crude prices. The country will confront the situation by strengthening its international reserves, he said in comments on state television.

``The price of oil has been falling as a product of the global crisis,'' Chavez said. ``That's the factor, that if it continues to extend itself for a period of time, could affect us, of course it would affect us.''

Chavez, who has previously said his government could ride out oil prices as low as $7 a barrel, will govern with a budget in 2009 that estimates an oil price of $60 a barrel. Venezuela depends on oil for about half of its public expenditure and crude oil products represent more than 90 percent of export revenue.

The Venezuelan crude oil and petroleum basket fell 2.9 percent on Nov. 7 from the previous week to $52.96. The index is published on a weekly basis.

To contact the reporter on this story: Daniel Cancel in Caracas at dcancel@bloomberg.net.

Last Updated: November 12, 2008 15:02 EST