Venezuelan President Hugo Chavez warned on Friday that oil prices could rocket to 100 U.S. dollars if his country stopped supplies to the United States.

"It's not true that if (an embargo) occurred prices would go up by 11 dollars," Chavez said in Panama, in response to a U.S. government draft report which put possible price hikes at 11 dollars per barrel.

"No, it would increase by more than twice what it says here. Prices would reach 100 dollars. They would pass the 100-dollar barrier."

Chavez has repeatedly threatened to cut oil shipments if the United States invades Venezuela, the world's No. 5 oil exporter which provides around 12 percent of U.S. oil imports.

However, he has also insisted that the embargo would take place only in the event of a U.S. attack.

In a related development, Chavez agreed to supply Panama with natural gas and petroleum in a deal signed during his ongoing visit here, just as Panama is experiencing one of its worst energy crises.

Source: Xinhua