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+0.25

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+0.22

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0

AI-92 42.36

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AI-98 51.79

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Diesel 47.5

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43

"Petroleum for food" in Venezuela

The Venezuelan petroleum crisis proceeds. It has already started to cause growing anxiety and excitement on the world market. Adherents of the President of country, Ugo Chavez, are rallied even more, and his opposition regrets misunderstanding the European community, which demands "not to ask for impossible".

The Venezuelan petroleum crisis proceeds. It has already started to cause growing anxiety and excitement on the world market. Adherents of the President of country, Ugo Chavez, are rallied even more, and his opposition regrets misunderstanding the European community, which demands "not to ask for impossible". And neither the government, nor its opponents are ready to recede. This is the situation on the 29th day of general unlimited strike, which has paralyzed the petroleum industry of Venezuela, of the fifth in size petroleum exporter in the world.

"Striking want the government to concede. And we want, them to recede. We want to win this fight ", - says Roy Shaderton, the Minister for foreign affairs, supporting Chavez. The opposition will remain "tireless" in the battle, objects Juan Fernandez, the representative of petroleum sector and one of the figures of Coordinadora Democratica party.

The association of representatives of business circles of Venezuela has created an opposition coalition, which consists of trade unions, oilmen, bankers, transport workers and publishers. They have accused the President of the country, Ugo Chavez, of deterioration of economic situation of the country and totalitarian manners, and have demanded the realization of a public referendum. As a result of the fourth strike during the last year the national economy was paralyzed. The petroleum branch of the country providing up to 80 per cent of all currency and half of budgetary receipts of Venezuela, sustains huge losses - about 70 million dollars per day. Bulk-oil ports and tanker fleet have also joined the strike. Seven from eight members of the board of directors of the state petroleum company PDVSA have resigned; many oil-refining factories have stopped. The country began to live on its stocks of fuel and, instead of exporting petroleum, it is even ready to import mineral oil.

The opposition threatens with civil war, and the president belonging to the left wing, is still full of determination to break this strike.

The threat of inevitable war in Iraq and actions of Venezuelan petroleum exporters influence the rise of prices for petroleum - over 32 dollars a barrel on New York stock exchange, it is the highest level for the last two years. Some experts are afraid of a bad petroleum market condition in January. The major part of petroleum imported in USA - about 13 % is Venezuelan petroleum, which pricing is influenced strongly by the situation in the country, says the ambassador of USA in Caracas.

Ali Rodriguez, the president of PDVSA marks, that losses of the company have added up to 1,3 billion dollars. The international reputation of the company is tarnished. The vice-president Jose Vicente Rang, on the contrary, with unusual optimism asserts, that the market conjuncture is normal.

And Chavez continues to promise Caribbean and American buyers, that the country will carry out all its international obligations. Also he is declined to militarization of industry to cope with the strikers from PDVSA and to the international solidarity.

In the view of the proceeding crisis growing deficiency of the foodstuffs is observed in the country. The government began to import meat, milk and maize flour from Columbia, Argentina and Chile. "The measure is insufficient, providing only 3 % of national needs", - asserts the representative of presidential opposition Jose Luis Betancourt. Also the government has informed, that the debts on petroleum deliveries of some buyers can be replaced with the foodstuffs. The so-called agreement "petroleum for food" is already concluded with Dominican Republic.

Author: Nadezhda Paderina

Source : Neftegaz.ru