March 8 (Bloomberg) -- Venezuelan Finance Minister Ali Rodriguez said that the drop in crude-oil prices has been larger than the decline in demand, and that the market will rebound eventually.

He said it was difficult to predict when prices would begin to rise and that a rally was unlikely this year. Some analysts predict the current economic crisis, which has depressed oil prices, will last until 2013, he said.

“There’s no relationship between the dramatic drop in prices and the fall in demand,” he said today in an interview on the Televen network. “There’s going to be a jump in prices.”

Oil-investment projects worldwide have been “paralyzed,” and the Organization of Petroleum Exporting Countries will decide at its meeting this month whether to cut production again, he said.

Venezuela depends on oil exports to finance more than half its budget, and the government is cutting all unnecessary spending this year to be able to maintain its social programs, Rodriguez said.

Crude oil for April delivery rose $1.91 to $45.52 a barrel March 6 on the New York Mercantile Exchange. Prices are down 69 percent since touching a record in July.

Rodriguez said that Venezuela is in a “relatively” comfortable position compared with other countries, because the government has built up savings in off-budget development funds that it can use to maintain spending when prices are low.

Venezuela doesn’t have any plans to devalue its pegged exchange rate, because it would cause inflation to accelerate, Rodriguez said.

To contact the reporter on this story: Matthew Walter in Caracas at mwalter4@bloomberg.net.

Last Updated: March 8, 2009 13:32 EDT