www.cnn.com Saturday, February 1, 2003 Posted: 8:35 PM EST (0135 GMT)

CARACAS, Venezuela (AP) -- Leaders of a two-month-old strike called to force President Hugo Chavez from power said they would ease the work stoppage next week to protect businesses against bankruptcy.

The decision was prompted Friday by pressure from the "Group of Friends," a forum made up of the United States and five other nations who are supporting efforts by the Organization of American States to broker an end to Venezuela's bitter political stalemate.

"We aren't going to let the government destroy the business sector and increase unemployment, then build a totalitarian model over the ashes," strike leader Carlos Fernandez said.

The decision to ease the 62-day work stoppage, however, won't affect striking workers at the state-run oil monopoly Petroleos de Venezuela S.A.

The strike has stifled oil production in Venezuela, the world's fifth-largest exporter.

The government has managed to raise oil production beyond 1 million barrels a day -- a third of normal levels -- signaling that Chavez was regaining control of the state oil company, where the walkout has been most effective. Oil provides 70 percent of export revenue and half of government earnings.

Abdullah bin Hamad al-Attiayh, president of the Organization of Petroleum Exporting Countries, said Saturday he welcomed Venezuela's increasing oil production as a factor that will bring more stability to the oil market.

Global oil prices shot over $30 a barrel this year because of lower exports from Venezuela and fear of a conflict with Iraq. Venezuela is a founding member of the oil cartel and, under Chavez, a leading proponent of production quotas.

Strike leaders made the announcement after a meeting with envoys from countries involved in the "Friends" initiative -- the United States, Mexico, Brazil, Chile, Spain and Portugal.

The envoys were in Caracas to persuade rivals to agree on a proposal calling for an amendment to the constitution, which would shorten Chavez's six-year term to four and open the way for a new election this year.

Venezuela's constitution allows opponents to request the amendment by gathering signatures from 15 percent of the country's 12 million registered voters. The opposition is organizing a nationwide petition drive to gather signatures on February 2.

The Bush administration has promoted early elections as a solution to the crisis.

But government representatives said they wouldn't agree to a proposal that could put an end to Chavez's "revolutionary" government.

"The government has no interest in doing away with itself," said Foreign Minister Roy Chaderton.

Another proposal calls on Venezuelans opposed to Chavez to prepare for a recall referendum on the president's rule, which is possible in August.

That proposal also met resistance.

"The government isn't interested in convoking a recall referendum," said Chaderton.

While foreign diplomats met with the two sides, tens of thousands of Chavez opponents staged a march to protest government investigations into three private television stations. Through the proceedings the government could fine or revoke the broadcast licenses of the stations -- or even close them.

Chavez repeatedly has clashed with the news media. He accuses newspapers, radio station and TV channels of joining an alleged conspiracy to overthrow him.

Media owners accuse Chavez of trying to censor his critics. Chavez's fiery rhetoric, they argue, encourages his most radical supporters to attack reporters and photographers.

The government's hard-line stance against proposals aimed at unseating Chavez, who was elected in 1998 and re-elected two years later, comes while support for the strike wanes and oil production increases.

In another sign the strike was weakening, banks, schools, shopping malls and franchise restaurants announced plans to open next week.

The strike has crippled the economy. Private economists warn the economy could shrink 25 percent in the first three months of the year -- after already contracting an estimated 8 percent last year.

economictimes.indiatimes.com REUTERS[ SUNDAY, FEBRUARY 02, 2003 12:27:04 PM ]

ABU DHABI: Opec power Saudi Arabia said on Saturday it saw no shortage of oil in world markets and vowed to ensure the producer group would fulfil its new higher output ceiling of 24.5 million barrels per day (bpd).

"We have responded to the demands of our customers...there is no shortage of crude supply," Saudi Arabia's oil minister Ali al-Naimi told reporters ahead of an energy and environment conference.

"I can assure you that we, as Saudi Arabia, will make sure that 24.5 million bpd is delivered."

Opec agreed last month to hoist its production ceiling by 1.5 million bpd to 24.5 million bpd in a bid to cover a supply shortfall created by strike-bound Opec member Venezuela.

But oil analysts had said the cartel was likely to fall short of the higher production limit since most members say Saudi Arabia and the UAE are bumping up against output capacity.

The Saudi oil minister declined to say how much the kingdom, the world's largest oil exporter, was pumping. Riyadh's new Opec quota from February is set at 7.963 million bpd, but industry sources say flows are expected to reach 8.5-9.0 million bpd.

The influential Saudi oil minister agreed with Opec president Abdullah al-Attiyah that world oil prices for now were being driven by war jitters and not a fundamental shortage of crude.

"The price is not really responding to supply and demand," said Naimi. "The test is that there are no customers asking for supplies. Ask any producer -- all his customers are satisfied."

Attiyah, who is the Qatari oil minister, went a step further and warned of a potential supply glut and price crash during the second quarter.

But for now, the threat of war in West Asia, which supplies 40 percent of world crude exports, and a two-month strike in exporter Venezuela have already pushed oil prices beyond $30 a barrel.

Oil dealers fear that a US-led assault on Iraq, the world's eighth biggest oil exporter, could put a heavy strain on global supplies.

In a bid to soothe market nerves, Naimi insisted that Saudi Arabia would be prepared, if needed, to make use of its still substantial spare capacity which he pegged at 2-2.5 million bpd.

"Saudi Arabia has stated many, many times its responsibility to the oil market," he said. "We will supply any shortage up to our capacity -- whatever the cause."

Naimi has made clear that Riyadh is capable, if necessary, of raising pumping rates to 10 million bpd within weeks.

The Saudi oil minister said Opec stood ready to make up for any supply shortages without major consuming countries having to release their emergency stockpiles of petroleum.

"From the discussions we have had with consuming countries, there is enough confidence now...in the producing countries to make up any shortfall without having to draw on strategic reserves," he said.

"We are willing as producers to make up shortages as they arise."

Worldwide inventories are now running on the low side, particularly in the United States, due to the Venezuelan strike. But Naimi said stockpiles would start to fill up soon.

"With Venezuela returning and supplies steaming to the US, we will see a gradual build in inventories," he said.

Opec president Attiyah said output from Venezuela had already recovered to about 1.4 million bpd and could rise to near full capacity within a few weeks, to near 2.8 million bpd.

The state of global stockpiles will dominate discussions at the cartel's March 11 meeting to review output policy.

"In March, the focus is definitely going to be on where international inventories are and what the projected demand decrease is for the second quarter," said Naimi.

He estimated there would be a demand decline of about 2.5 million bpd in the second quarter of the year when warmer weather in the northern hemisphere cuts consumption for crude.

goerie.com ASSOCIATED PRESS

CARACAS, Venezuela — Opponents of President Hugo Chavez began focusing on a petition driver to cut his term in power Saturday, after agreeing to ease a two-month strike that has crippled Venezuela's economy.

Opposition leaders plan to hold what they call the "Great Sign-up" on Sunday, inviting citizens to sign various initiatives rejecting Chavez's government and seeking his ouster.

The opposition hopes one petition in particular — a constitutional amendment to reduce Chavez's term from six to four years — will succeed, paving the way for general elections later this year.

Under the constitution, organizers need signatures from 15 percent, or about 1.8 million, of the country's 12 million registered voters — a number they expect to easily surpass.

"Our idea is to get 5 million signatures," Carlos Ocariz, a member of the opposition party Justice First, said Saturday on Globovision television.

The amendment was one of two proposals made by Nobel Peace Prize winner and former President Jimmy Carter.

The other is to hold a recall referendum on Chavez's rule halfway through his six-year term, in August.

The opposition will also collect signatures for this initiative Sunday. Representatives from the United States, Brazil, Chile, Mexico, Portugal and Spain said met in Caracas on Friday to urge both sides to accept one of Carter's proposals and bring Venezuela's prolonged crisis to a swift end.

The six-nation "Group of Friends" said both the government and opposition must make concessions during negotiations mediated by Cesar Gaviria, the secretary-general of the Organization of American States.

Strike organizers, who began the protest Dec. 2 to pressure Chavez into accepting a referendum on his rule, said they would ease the work stoppage next week to protect businesses against bankruptcy.

"We are expecting a gradual return to activities in the various sectors that make up the country," opposition negotiator Manuel Cova said Saturday.

"We want to give the international community our absolute disposal to negotiate an electoral solution."

The strike has cost at least $4 billion in lost oil revenues alone, the government estimates. And the Santander Central Hispano investment bank has warned that the economy could shrink by as much as 40 percent in the first quarter of 2003.

www.sabcnews.com

February 02, 2003, 08:45

Zlitni said the oil market was well supplied and global inventories were building up, setting the stage for a sharp decline in prices. "Supplies are sufficient and the build up of stocks will have a negative impact on prices, certainly," he said.

The Libyan oil minister said most cartel members were pumping at high rates in a bid to cool-off scorching oil prices which had blasted beyond $30 a barrel. "It seems everybody now is producing above the market requirements to make the market cool," he said.

Opec last month agreed to raise its supply limits by 1,5 million barrels per day (bpd) to 24,5 million bpd to cover the supply gap left by strike-bound member Venezuela.

Ali al-Naimi, an influential Saudi oil minister, said yesterday the kingdom would ensure that the producers group was pumping oil at 24,5 million bpd. - Reuters

www.orlandosentinel.com By Stephen Ixer | The Associated Press Posted February 2, 2003

CARACAS, Venezuela -- Opponents of President Hugo Chavez began focusing on a petition drive to cut his term in power, after agreeing to ease a two-month strike that has crippled Venezuela's economy.

Opposition leaders plan to hold what they call the "Great Sign-up" today, inviting citizens to sign initiatives rejecting Chavez's government and seeking his ouster.

The opposition hopes one petition in particular -- a constitutional amendment to reduce Chavez's term from six to four years -- will succeed, paving the way for general elections later this year.

Under the constitution, organizers need signatures from 15 percent, or about 1.8 million, of the country's 12 million registered voters -- a number they expect to easily surpass.

"Our idea is to get 5 million signatures," Carlos Ocariz, a member of the opposition party Justice First, said Saturday on Globovision television.

The amendment was one of two proposals made by former U.S. President Jimmy Carter, a Nobel Peace Prize winner.

The other is to hold a recall referendum on Chavez's rule halfway through his six-year term, in August. The opposition also will collect signatures for this initiative.

Representatives from the United States, Brazil, Chile, Mexico, Portugal and Spain met in Caracas on Friday to urge both sides to accept one of Carter's proposals and bring Venezuela's prolonged crisis to a swift end.

The six-nation "Group of Friends" said the government and the opposition must make concessions during negotiations mediated by Cesar Gaviria, the secretary-general of the Organization of American States.

Strike organizers, who began the protest Dec. 2 to pressure Chavez into accepting a referendum on his rule, said they would ease the work stoppage this week to protect businesses against bankruptcy.

The strike has cost at least $4 billion in lost oil revenues alone, the government estimates.

Effects of the strike remain greatest in the vital oil industry, which makes up a third of the economy and provides half of government income.

Despite government efforts to restart the industry, production remains just more than 1 million barrels a day, or about a third of pre-strike levels.