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Strike Costing Venezuela $50 Million A Day in Oil Exports

An army soldier directs traffic as a long line of cars waits to enter one of the few open gasoline stations in Maracaibo in western Venezuela

CARACAS, December 11 (IslamOnline & News Agencies) - Venezuela is losing 50 million dollars a day in oil exports as a result of a general strike, Energy Minister Rafael Ramirez said Tuesday, December 10.

“The cost caused to the county is of 50 million dollars a day,” he said, blaming striking oil tanker captains and managers of the state oil company Petroleos de Venezuela (PDVSA.)

“Venezuela is suffering serious damage to its credibility,” said Ramirez.

The strike, called on December 2 to press for the resignation of President Hugo Chavez all but shut down the oil sector in Venezuela, the world’s fifth largest petroleum exporter, Agence France-Presse (AFP) reported.

“Evidently, the industry is being damaged,” he said.

Ramirez made the comments shortly after the government announced he would not participate in a meeting of the Organization of Petroleum Exporting Countries (OPEC) in Vienna Thursday, December 12.

The conflict in Venezuela caused deep concern on international oil markets and New York reference light sweet crude for January delivery climbed 57 cents to 27.74 dollars Tuesday.

The intensification of Venezuela’s crippling strike has fueled concerns over the stability of the oil-exporting country and prompted the United States to warn Americans not to travel there.

Combat troops manned those gas stations that still had supplies, lines outside Caracas banks stretched hundreds of meters, dozens of flights were canceled, and panic buying was evident in supermarkets not shuttered by the strike.

Opposition members march around a military air force base in Caracas, Venezuela

Further adding to the tension, talks aimed at preventing an explosion of the conflict failed to make any significant progress as the opposition reacted coolly to indications embattled President Hugo Chavez might be ready to make concessions.

Under mounting pressure, the government had expressed willingness to discuss a timetable for early elections.

But the opposition again insisted the leftist-populist president should step down.

The United States, the top importer of Venezuelan oil, has watched the situation with alarm in recent days and said early elections would help end the crisis.

On Tuesday, the State Department warned U.S. nationals to defer travel to Venezuela, and urged those already in the country to consider departing.

Washington also authorized the departure of non emergency personnel at its embassy in Caracas “due to the deteriorating political and security situation and the severe shortages of fuel and food supplies.”

But leaving the country could prove increasingly difficult as the strike grounded the country’s main airline and led to the cancellation of numerous domestic and international flights.

“It looks like a cold civil war in which each side is sitting in its trenches, but the situation could explode at any moment and turn into a real civil war,” said political analyst Alfredo Keller.

The strike, launched on December 2, gained strength as long-distance bus drivers joined the protests and banks cut their hours of operations.

Even the supreme court came to a standstill, as its 20 judges said in a statement they would halt all but the most essential activities “as long as the harassment and the insults continue ...”

Chavez lashed out at the judges after they threw out charges of rebellion issued against four senior military officers accused of staging an April 12 coup. Chavez was deposed for two days before loyal troops restored him to power.

Venezuelans stocked up on food and water as the strike created shortages at markets

A former paratrooper, Chavez himself had led a failed coup attempt in 1992, six years before being elected president. He was again elected to a six year term in 2000.

The president claims the strike leaders are seeking to oust him again. The claim has triggered fears he might decree martial law.

Government and military officials insisted the armed forces were squarely behind Chavez, who deployed troops to commandeer fuel trucks, force gas stations to remain open, take over oil tankers and seize refineries.

But the head of the state oil company, Ali Rodriguez, has admitted that the oil sector, which accounts for 50 percent of the government’s income and 80 percent of foreign currency earnings, has come to a halt.

Venezuela is the only Latin American member of the Organization of Oil Exporting Countries (OPEC), and its political crisis is likely to figure prominently at a ministerial meeting of the cartel in Vienna Thursday.

 

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