Venezuelan President Hugo Chavez has proposed extending a barter scheme used by Cuba to other Caribbean and Central American nations to help them pay for oil supplies with products and services.

Venezuela sends nearly 100,000 barrels of subsidised oil a day to Havana and in return, thousands of Cuban doctors and teachers offer free services in Venezuela.

Mr Chavez was speaking at a summit of his regional energy alliance, Petrocaribe, which allows signatory countries to defer payment on 40% cent of the oil they buy from Venezuela for up to 25 years, paying interest of only 1%.

President Chavez said that they have begun to create a new geopolitics of oil.