Nov. 24 (Bloomberg) -- Venezuelan President Hugo Chavez said the Organization of Petroleum Exporting Countries should return to a system of setting a price band for crude oil in order to guarantee stability in the market.

The country would consider a price of $80 to $100 a barrel to be ``fair,'' Chavez said today in a televised press conference in Caracas. OPEC created price bands in the late 1990s to try to keep oil between $22 and $29 a barrel.

Chavez's call comes after oil futures in New York slumped 63 percent from a record $147.27 a barrel on July 11. Prior to that, crude had doubled in 12 months. Venezuela's national budget for next year is based on an average price of $60 a barrel.

Crude oil for January delivery fell as much as 69 cents, or 1.3 percent, to $53.81 a barrel on the New York Mercantile Exchange. It was at $53.84 a barrel at 11:36 a.m. Singapore time.

While Venezuela has enough reserves and willpower to last a year with oil prices similar to those a decade ago, lower prices will reduce investments in the industry and lead to severe shortages in the future, Chavez said.

At the end of 1998, oil traded at $12.05 in New York.

To contact the reporter on this story: Steven Bodzin in Caracas at sbodzin@bloomberg.net.

Last Updated: November 24, 2008 23:20 EST