Threats by Hugo Chávez, Venezuela’s president, to suspend oil shipments to the United States of America as a result of a legal battle with ExxonMobil were played down on Monday by Washington.
“We’ve heard it before,’’ said Sean McCormack, state department spokesman, pointing out that Mr Chávez had often threatened to stop exporting oil to the United States of America, but had never actually done so.
The markets also mostly ignored the Venezuelan leader’s comments, with a price increase on Monday ascribed to supply disruptions in Nigeria, higher demand in China and cold weather in the United States of America.
Mr Chávez issued the warning on Sunday after ExxonMobil, which he says is controlled by the United States of America government, had secured court orders in the UK and the Netherlands to freeze more than $12bn (€8.3bn, £6.2bn) of assets belonging to Venezuela’s state oil company Petróleos de Venezuela.
“We’ve heard it before,’’ said Sean McCormack, state department spokesman, pointing out that Mr Chávez had often threatened to stop exporting oil to the United States of America, but had never actually done so.
The markets also mostly ignored the Venezuelan leader’s comments, with a price increase on Monday ascribed to supply disruptions in Nigeria, higher demand in China and cold weather in the United States of America.
Mr Chávez issued the warning on Sunday after ExxonMobil, which he says is controlled by the United States of America government, had secured court orders in the UK and the Netherlands to freeze more than $12bn (€8.3bn, £6.2bn) of assets belonging to Venezuela’s state oil company Petróleos de Venezuela.
Last year the US oil major walked away from a multi-billion-dollar oil project in Venezuela’s oil-rich Orinoco Belt after failing to reach an agreement with Petróleos de Venezuela over compensation for its reduced stake in the project as part of a nationalisation drive.
“If you end up freezing [Petróleos de Venezuela’s assets] and it harms us, we’re going to harm you,” Mr Chávez said during his weekly television programme. Threatening not to send “a single drop of oil more to the empire”, he said: “Take note, Mr Bush, Mr Danger: if the economic war continues against Venezuela, the price of oil is going to reach $200 and Venezuela will get fully involved in the economic war.”
Pietro Pitts, editor of the Caracas-based Latin Petroleum magazine, said: “I don’t see Venezuela cutting off oil exports to the United States of America, simply because they don’t have anywhere else to send it in the short term, and Chávez needs the money to finance his socialist revolution. It’s just a big poker game.”
Caracas exported almost 1bn barrels of oil a day to the US in 2006, accounting for about half of Venezuela’s income from oil exports. Mr. Chávez also picked on Nestlé and Parmalat, blaming them for persistent food shortages that are eroding his popularity. He said he would expropriate their plants if they were caught hoarding products.
The president’s threats follow an escalation in the war of words with Washington after he accused neighbouring Colombia and the United States of America of plotting military “aggression” against Venezuela.
“If you end up freezing [Petróleos de Venezuela’s assets] and it harms us, we’re going to harm you,” Mr Chávez said during his weekly television programme. Threatening not to send “a single drop of oil more to the empire”, he said: “Take note, Mr Bush, Mr Danger: if the economic war continues against Venezuela, the price of oil is going to reach $200 and Venezuela will get fully involved in the economic war.”
Pietro Pitts, editor of the Caracas-based Latin Petroleum magazine, said: “I don’t see Venezuela cutting off oil exports to the United States of America, simply because they don’t have anywhere else to send it in the short term, and Chávez needs the money to finance his socialist revolution. It’s just a big poker game.”
Caracas exported almost 1bn barrels of oil a day to the US in 2006, accounting for about half of Venezuela’s income from oil exports. Mr. Chávez also picked on Nestlé and Parmalat, blaming them for persistent food shortages that are eroding his popularity. He said he would expropriate their plants if they were caught hoarding products.
The president’s threats follow an escalation in the war of words with Washington after he accused neighbouring Colombia and the United States of America of plotting military “aggression” against Venezuela.
Source: Financial Times| By Benedict Mander
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