www.charlotte.com Posted on Sat, Jan. 25, 2003 KEN GUGGENHEIM Associated Press

WASHINGTON - Officials from the United States and five other countries looked for ways Friday to end a violent political strike in Venezuela that has crippled oil production in the world's fifth-largest exporter.

The strike has lasted more than seven weeks to press opposition demands that President Hugo Chavez resign or call early elections. Opponents say Chavez's leftist policies have undermined business in Venezuela; Chavez's supporters say the opposition wants to bring down a democratically elected president who enjoys strong support among the nation's many poor.

In a sign of U.S. interest in a diplomatic resolution, Secretary of State Colin Powell attended the start of a meeting at the Organization of American States that included officials from Brazil, Mexico, Chile, Spain and Portugal -- members of a new Friends of Venezuela group.

Among proposals to be considered were some offered by former President Carter to end the strike in exchange for early elections.

State Department spokesman Richard Boucher said Thursday that the United States considers the Venezuelan situation to be tense and difficult.

He rejected a suggestion that U.S. interest is linked to the likelihood of war in Iraq and the turmoil it could cause in international oil markets.

www.news24.com 25/01/2003 11:03  - (SA)  

New Delhi - Iran has condemned the "misuse" of the global campaign against terrorism that had created a situation of war, and has called for a peaceful resolution of the Iraq crisis.

"Unfortunately the world today is scarred by terror and terrorism," Iranian President Mohammad Khatami told reporters on Saturday in New Delhi after a ceremonial welcome at the presidential palace.

"The misuse of the present situation has created a situation of war."

Hope for peaceful resolution

Khatami did not elaborate, but added: "While we recommended to Iraq to abide by the UN Security Council resolutions, we hope there will be no war against Iraq. I hope the present situation would be solved without any war in a peaceful way."

Discussion on terrorism

Khatami arrived on Friday on a four-day official visit to India.

He is scheduled later on Saturday to hold talks with Indian leaders on issues such as terrorism, regional tensions and an oil pipeline.

Khatami, who is guest of honour at India's Republic Day celebrations on Sunday, is being accompanied by Foreign Minister Kamal Kharazi, Oil Minister Bijan Namdar Zanganeh, Defence Minister Rear Admiral Ali Shamkhani and Science and Technology Minister Mostapha Moin.

Countries do not agree with unilateral action

Speaking to reporters before the official welcome, Kharazi, too, highlighted the need to avoid war in Iraq.

"Every country is very much concerned about the crisis in Iraq" and its impact on their national security, he said.

"We must do our best to avoid war in the region ... this is the time for multilateralism, not unilateralism."

When asked to comment about sharp differences between the United States and European countries including France and Germany on military action against Iraq, Kharazi said this proved European countries do not agree with "unilateral action," against Baghdad.

"European countries can play a very important role in advising the US ... European countries should insist on multilateralism," he said.

Eorpean concerns brushed aside

On Thursday, Germany and France urged "a peaceful and negotiated solution to conflicts, which is always preferable to the use of force and its disastrous consequences," while calling for UN weapons inspectors to be given more time to do their work in Iraq.

Washington however brushed aside the Franco-German statement saying the two countries were not representative of modern Europe.

On Friday, the UN's nuclear watchdog warned it needed several more months to complete weapons inspections in Iraq.

A spokesman for the International Atomic Energy Agency (IAEA) said at its Vienna headquarters that it would ask the UN Security Council on Monday for more time to complete their job.

Oil price could rise dramatically

Also speaking to reporters at the official welcoming ceremony in New Delhi Saturday, Iranian Oil Minister Zanganeh warned that the price of oil could rocket in the event of a US-led war on Iraq.

"The price depends on political and military tension in the Middle East and elsewhere in Venezuela," where an opposition-sponsored strike to force President Hugo Chavez from office has crippled the oil industry.

Though there was currently no shortage of oil in the market, if Iraq stopped production there would be shortfall of about one and a half to two million barrels, Zanganeh warned.

"We hope not to witness it," he added.

When asked if Iran would increase production to ease the situation, the Iranian minister said Tehran would go along with the decision taken by members of the Organisation of Petroleum Exporting Countries. - Sapa-AFP

www.canoe.ca Saturday, January 25, 2003 By CP

FORT MCMURRAY -- Sky-high oil prices, higher output and lower operating costs at Syncrude Canada drove Canadian Oil Sands Trust's fourth-quarter 2002 earnings to $94.5 million -- almost triple the amount earned in the same period last year.

"The benefit of robust crude oil prices was optimized by solid, steady operations at Syncrude in the second half of the year," Marcel Coutu, the trust's president and chief executive officer, said in a statement to investors.

Syncrude president Jim Carter acknowledged the trust's bonanza has a lot to do with continued instability in the Middle East over fears of a U.S.-led war on Iraq and a general strike that has crippled Venezuela's oil production.

"There's not really an awful lot we can do at this end about the price of oil," said Carter.

"All we can really do is keep getting our costs down and our production up."

www.forbes.com Reuters, 01.25.03, 5:02 AM ET

(corrects typo in first paragraph) By Knut Engelmann

DAVOS, Switzerland, Jan 25 (Reuters) - Saudi Arabia said on Saturday there was no lack of oil in world markets despite fears of war in Iraq, signalling the world's top oil producer has no intention to raise production further for the moment.

"There is no shortage in the market and there should be no reason for prices (to be) where they are today," Saudi Oil minister Ali al-Naimi told a panel discussion at the World Economic Forum annual meeting in the Swiss ski resort of Davos.

"We checked. We called. I checked with individual customers, refineries and others. I ask them one question: Do you feel you need more oil? And the answer is no," he said.

Oil prices have surged -- topping the $22-$28 range per barrel that OPEC is targeting -- amid fears of a U.S.-led war in Iraq and because of a seven-week-old general strike that has cut exports from OPEC member Venezuela.

In the United States, prices hit a high of $35.20 this week. U.S. crude traded above $33 on Friday.

"We believe $25 is the right price to meet the interests" of producers, consumers, and world oil companies, Naimi said. "We will try to get it back at $25. That's where we want it to be."

OPEC aims to keep prices for a basket of its crude in a $22-$28 range and has just raised production quotas by seven percent or 1.5 million barrels a day effective February 1.

"There are all these drums of war going around," Naimi said. "It has nothing to do with supply. We know there is a balance of demand and supply."

Still, Naimi pledged that Saudia Arabia and the rest of the Organisation of Petroleum Exporting Countries, which it dominates, would work together, should a war in Iraq and continued troubles in Venezuela continue to keep a lid on world oil supplies.

"We have always said that regardless of the cause of the shortage, OPEC and Saudi Arabia will do their utmost to make up for the shortage," he said.

His comments echoed those of OPEC Secretary-General Alvaro Silva, who told the high-powered gathering on Friday there was nothing more OPEC could do to rein in runaway world oil prices.

"What can we do more? I do not agree there is a lack of oil," he said. "The problem of the price is the threat of war."

Naimi said oil prices would be above $40 a barrel now if Saudi Arabia had not maintained spare capacity of around three million or 3.5 million barrels per day. But he declined to say exactly what Saudi Arabia's daily production level was.

Naimi added his country could quickly boost oil output to 10.5 million barrels per day, should supplies be disrupted for any reason. But it would need around 90 days to get the infrastructure in place to support such high output levels in the longer term.

Saudi Arabia's production quota was set at 7.963 million barrels per day from February but sources in the kingdom say it is expected to be pumping 8.5-9 million in the next few weeks.

OPEC President Abdullah al-Attiyah warned there may in fact be a glut of oil in world markets soon as the onset of warm weather in the northern hemisphere cuts demand just as the group has raised supply.

"We calculated that we will have a three million barrel (per day) surplus by March," he told Reuters. OPEC will next meet on March 11 to review its output levels.

The northern springtime normally cuts demand for crude by around two million barrels per day (bpd), and another two to 2.5 million bpd could be flowing onstream if the strike in Venezuela is resolved by then.

www.guardian.co.uk Saturday January 25, 2003 6:10 AM

CARACAS, Venezuela (AP) - An earthquake with a preliminary magnitude of 4.8 jolted the capital and the coast of Venezuela Friday night, but no injuries or major damage were reported.

The tremor hit at about 10:12 p.m. EST and was centered near the eastern coastal town of Higuerote, about 112 miles east of Caracas, Herbert Rendon of the Venezuelan Foundation of Seismological Investigations told Globovision television.

The quake rattled Caracas and the northern coastal state of Vargas.