Chavez threat to U.S.: No oil for you

Venezuelan president Hugo Chavez has threatened to cut off all oil sales to the U.S. days after several international courts ruled that $12 billion in Venezuelan oil assets should be frozen. In statements made yesterday, Chavez did not mince words against ExxonMobil (the plaintiff in the trials) and the U.S. government:

"If you freeze them (the funds) and it hurts us, we are going to hurt you. Do you know how? We will not send any more petroleum to the United States. Take notes, Mr. Bush, Mr. Danger," Chavez said in his weekly television and radio show, "Alo Presidente"…

Chavez called the clash with Exxon Mobil "the tip of an iceberg that is economic war."

Should the economic war break out, oil prices would reach 200 dollars a barrel, he said.

"And more than one other nation is willing to take our side in this economic war. You will not frighten or dissuade us," Chavez said, adding that Exxon Mobil was "a spearhead for imperialism."

The price of a barrel of crude oil fell in early morning trading today with the latest reports indicating that it has gone to below $92 per barrel.

The courts’ ruling last week may force a slowdown of the Venezuelan government’s nationalization plans for oil in that other major oil firms could join ExxonMobil’s lead. However, Venezuelan oil minister Rafael Ramirez claimed that the court orders were a “bluff” by Exxon and that business will continue.

Sources- Forbes.com, The Latin Americanist, Xinhua, AFP, Bloomberg, Christian Science Monitor, Telegraph.co.uk

Image- Telegraph.co.uk