Venezuela threatens to cut US oil supply
Updated on 11 February 2008
Venezuela President Hugo Chavez has threatened to cut off oil supplies to the United States unless a lawsuit is dropped.
Last year, Chavez seized control of a heavy crude upgrading business in Venezuela that belonged to Exxon Mobil.
The state oil company PDVSA is Venezuela's main source of income and President Chavez plans to nationalise businesses within the country's borders, to prevent foreign businesses controlling Venezuela's natural resources.
But Exxon Mobil is seeking compensation and their legal action has frozen $12 billion (£6.2 billion) of assets belonging to PDVSA, preventing the sale of certain assets and the movement of some funds while the case is under review.
The White House has distanced itself from Exxon's lawsuit but President Chavez claims it is an aggressive act by the United States and he warned the price of oil could double to almost $200 a barrel if he withholds supply.
President Chavez said: "If you freeze us, if you really manage to freeze us, if you damage us, then we will hurt you. Do you know how? We are not going to send oil to the United States, Mr. Bush, Mr. Danger."
He added: "Never again will they rob us, the Exxon Mobil bandits. They are imperial, American bandits, white-collared thieves. They turn governments corrupt, they oust governments. They supported the invasion of Iraq."
However, the court orders secured by Exxon Mobil in Britain, the Netherlands and the Caribbean came as a blow to President Chazvez, who recently lost a national referendum on expanding his powers and making socialism a state goal.
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