Nov. 8 (Bloomberg) -- The fall in oil prices is temporary and will rebound because of high demand, Venezuelan President Hugo Chavez said.

Chavez cited a report from the International Energy Agency released this week saying oil-import prices will average $100 a barrel between 2008 and 2015 and that the threat of a ``supply crunch'' remains.

``These are circumstances we are living,'' Chavez said in comments broadcast on state television last night. ``The world will increasingly need more energy.''

The fall in oil prices threatens Chavez's ability to fund social programs at home and aid programs in the region. Venezuela is the fourth-biggest supplier of foreign crude oil to the U.S.

Higher oil prices also will increase demand for oil and gas drilling rigs in Venezuela and among other South American energy producers, Chavez said. Venezuela has sent two rigs to both Bolivia and Ecuador, who lack such equipment, he added.

Crude oil futures on the New York Mercantile Exchange closed at $61.04 yesterday after rising to a record $147.27 a barrel in July.

To contact the reporter on this story: Jose Orozco in Caracas at jorozco8@bloomberg.net

Last Updated: November 8, 2008 12:23 EST