Adamant: Hardest metal
Wednesday, February 5, 2003

Venezuela rejects poll plan - Chavez opponents say millions backed a referendum

news.bbc.co.uk Tuesday, 4 February, 2003, 15:55 GMT

The Venezuelan Government has rejected an opposition call for a vote on a constitutional amendment to allow the term of President Hugo Chavez to be cut short.

The move revives the spectre of prolonged political turbulence in Venezuela, after a 64-day strike had appeared to be faltering.

Long queues are now much rarer than at the height of the strike

Opposition leaders claim they collected four million signatures supporting the initiative, a number double that necessary to call a national referendum.

However, the government said it endorsed another plan - to hold a binding referendum on Mr Chavez's presidency after August.

"We're proposing what we always have: referendum after 19 August as laid down in the constitution," Vice-President Jose Vicente Rangel said.

Carter suggestions

Mr Chavez had previously been reported as saying he would have "no problem" with the referendum.

Both proposals had been put forward by former US President Jimmy Carter as ways out of the crisis.

The first - the constitutional amendment - would have allowed the presidential term to be cut from six years to four years, in this case opening the way for fresh elections early next year.

But the Supreme Court ruled last month that the National Assembly should appoint a new electoral body to verify the opposition petition and, if necessary, set a referendum date.

Chavez: buoyed by 'victory', is in uncompromising mood

Opponents of Mr Chavez branded the ruling politically motivated as it would delay any eventual referendum by months.

They accused the government of hampering negotiations to put an end to the bitter confrontation over Mr Chavez's rule.

"This response takes us further away from the Carter proposal, especially about any electoral date," anti-Chavez union head and opposition negotiator Manuel Cova told the Reuters news agency.

"The government just isn't interested."

Not so generous

Vice-President Rangel also dismissed Mr Carter's call for no reprisals against workers at the state oil company. Output from the world's fifth-largest oil exporter fell from 3.2 million barrels per day to a strike low of just 150,000 barrels.

Mr Chavez has fired more than 5,000 oil company employees. Some had been given their jobs back after being involved in the short-lived coup against Mr Chavez last April.

But correspondents say he looks unlikely to be so generous again.

Reduced oil production remains the most damaging effect of the strike.

Mr Chavez says production is back up to 1.8 million barrels a day, though oil strikers said output still hovers around one million barrels.

Iraq, Venezuela remain in oil focus - Gold makes gains dollar weakness; gasoline hits $1

cbs.marketwatch.com By Myra P. Saefong, CBS.MarketWatch.com Last Update: 4:24 PM ET Feb. 4, 2003

NEW YORK (CBS.MW) -- Oil futures climbed Tuesday, reflecting traders' renewed concern about prospects for war in the run-up to a United Nations presentation by Secretary of State Colin Powell that could reveal proof of Iraq's defiance to disarm.

Two other factors -- news that Venezuela's production continues to climb and warnings by OPEC that the market could be in for a supply glut in the second quarter -- kept a cap on crude's price rise, however.

Traders also looked toward Wednesday morning's update on U.S. oil supplies. With analysts expecting a fall in gasoline and distillate supplies, petroleum-product futures rallied nearly 5 percent.

On the New York Mercantile Exchange, the benchmark March crude contract closed at $33.58 a barrel, up 82 cents, or 2.5 percent. It fell more than 2 percent in Monday's action.

Meanwhile, gold futures prices soared above $379 an ounce to touch their highest level in more than six years, pulled higher by Tuesday's weakness in the U.S. dollar. See Metals Stocks.

"The approach of war with Iraq still remains a significant barrier to any real reversal in prices," analysts at Fimat USA told clients.

Powell's report to the U.N. on Wednesday "could have a unifying effect on the Security Council," said Grady Garrett, chief trading strategist at EnergyTrendAlert.com.

He pointed out that "a more unified front" regarding any military action against Iraq "will go a long way toward reliving some of the global uncertainty."

Venezuelan output rising

Still, "there are some fundamental factors that should start to weigh down on crude," said Garrett.

With Venezuela's two-month-old labor strike winding down, workers in all sectors except the oil industry having been returning to work.

President Hugo Chavez claims the Latin American country's oil production has now reached 1.8 million barrels per day, up from the strike's lows of around 150,000 barrels a day and representing more than half of the country's usual daily output of 3 million barrels. Striking oil workers claim output is at more like 1.2 million barrels per day.

Looking ahead, however, Venezuela is expected to add 200,000 more barrels per day in the coming weeks, the Associated Press reported.

Reports also surfaced Monday that OPEC would more likely consider a cut in the cartel's output in the second quarter, sparked by fears of oversupply as demand slows.

Oil products rally before supply data

Futures prices for petroleum products rallied along with crude Tuesday, climbing nearly 5 percent on expectations that the latest U.S. report will reveal a decline in supplies.

March unleaded gasoline jumped to close at $1.001 a gallon, up 4.38 cents, while March heating oil tacked on by 4.38 cents to 96.19 cents a gallon.

Updates from the American Petroleum Institute and the Energy Department on U.S. petroleum supplies are due Wednesday morning.

Motor gasoline likely declined by 1 million barrels in the week ended Jan. 31, according to estimates from IFR Pegasus senior analyst Tim Evans and analysts at Fimat USA. Evans, however, said the fall could be as high as 2 million barrels.

Distillates likely fell by 4 million to 6 million barrels, Evans said. Fimat sees a smaller decline of 3 million barrels.

Both generally expect crude supplies to be up for the week.

Evans expects crude supplies compared to the prior week will range between flat and an increase of as much as 2 million barrels. Fimat forecasts a 2 million-barrel rise.

Natural gas slips back

In other energy news, March natural gas closed lower by 0.4 cent at $5.762 per million British thermal units, selling off after rising as much as 11 cents earlier in the session.

Weather forecasts call for below-normal temperatures in much of the U.S. by the end of this week, but most analysts expect this week's update on U.S. supplies to reveal a fall smaller than what's been seen in recent weeks.

Fimat estimates that natural-gas inventories fell by 192 billion cubic feet. In the past two weeks, supplies fell by 219 billion and 247 billion cubic feet.

But Fimat's estimate for Thursday's report from the Energy Department is still well above the year-ago decline of 78 billion cubic feet, and the five-year average of 120 billion.

Over in the equities arena, most oil service stocks closed higher on the back of crude's climb. The Oil Service Index ($OSX: news, chart, profile) climbed 2.7 percent. See Energy Stocks.

The Reuters/CRB Index, a broad-based measure of the commodity futures market, closed at 248.2, up 0.3 percent on strength in crude and gold futures. Myra P. Saefong is a reporter for CBS.MarketWatch.com in San Francisco.

Brussels remains concerned about oil prices

www.eubusiness.com

BRUSSELS, Feb 4 (AFP) - The recent surge in world oil prices amid war jitters over Iraq remain a source of concern as to their impact on economic growth, the European Commission said on Tuesday.

But a strengthening of the euro is offsetting the impact of the crude price increase, which is also being tempered by a resumption of production by Venezuela, said the EU executive.

Oil price rises "remain a concern" but are "compensated for to a certain extent by the increase" in the value of Europe's single currency, said a spokesman for Monetary Affairs Commissioner Pedro Solbes.

The latest commission forecasts, which predicted an average of 1.8 percent growth in the 12-member eurozone, were based on the assumption of an average crude price of 24 dollars a barrel.

If crude prices were to rise by 10 dollars, to an average of 34 dollars, growth would be reduced by 0.2 percentage points this year and by the same amount next year, said the spokesman.

Around midday Tuesday a barrel of reference Brent crude for March delivery stood at 30.20 dollars, amid continuing tension ahead of a presentation by US Secretary of State Colin Powell to the UN Wednesday of new evidence concerning alleged Iraqi weapons of mass destruction.

The euro has surged against the dollar in recent months, with dealers selling off the greenback as sabre rattling by Washington appeared to bring the prospect of a Gulf conflict closer.

Text and Picture Copyright © 2003 AFP. All other copyright © 2003 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.

Consumers uneasy with rising gas prices

www.chillicothegazette.com By KIRRAN SYED Gazette Staff Writer

Matthew A. Pentecost/ For the Gazette

Bill Meixner of Portsmouth pumps gas at the BP station on Main Street.

The price of filling up is going up ... and some consumers are fed up.

A gallon of unleaded gasoline in south central Ohio is about one-third higher than it was this time last year, according to information from the east-central office of the American Automobile Association.

The average price per gallon of unleaded gasoline in the region during the last week of January was $1.47. The price per gallon during that time in 2002 was about $1.01, according to the association.

They attribute the almost 46 cent increase in one year to a combination of factors including uncertainty in the Middle East, labor unrest in oil-exporting Venezuela and an agreement between the Organization of Petroleum Exporting Counties to better comply with production quotas.

These factors have combined to limit the availability of oil on the world market, keeping demand and prices high, according to the association.

The association's energy analysts say they do not expect gasoline prices to move much until the US more clearly states its intentions concerning Iraq.

They say a firm deadline for Iraq's compliance with United Nations inspections may cause higher fuel prices because it increases the chance that war may occur and destabilize the Middle East. American acceptance of continued inspections could result in lower prices because it would reduce that area's instability.

No choice in matter

"It's just ridiculous," said Nancy Gilbert, of Waverly, who purchased $15 in gas Sunday afternoon in preparation for the work week. "I think they're terrible but you have to go to work."

"Really, there's not a whole lot you can do," she said. "You have to get to and from places and they know that."

Gilbert said she has taken some steps to reduce how much gas she uses. She said she recently sold her sports utility vehicle and has reduced her pleasure driving.

"I don't just jump in the car anymore. While I'm out, I try to think about what I need. If I need to stop at the store, I try to do it while I'm going to and from work," she said.

Ways around problem

Other consumers say they often wait for several days before purchasing gas in the hopes that the price will go down, if only by a few pennies.

"I waited about four or five days to see if the gas would be cheaper. I was down to where I had to get it," said Roger Young, of Chillicothe, who also purchased $15 dollars in gas on Sunday.

"I stretch it out as much as possible. When the price goes down, I just fill up. When he price goes up, I stretch my gas out as much as possible," he said. "I have to buy it about every two weeks minimum."

Young said one of the most frustrating things is how quickly the price changes. As a result, no matter how much he shops around and delays, he often feels frustrated.

"I shop for gas. (But) I can fill this car up and go home and five minutes later, the price of gas has changed," he said. "I get aggravated."

(Syed can be reached at 772-9364 or via e-mail at ksyed@nncogannett.com)

Originally published Tuesday, February 4, 2003

Consumers uneasy with rising gas prices

www.chillicothegazette.com By KIRRAN SYED Gazette Staff Writer

Matthew A. Pentecost/ For the Gazette

Bill Meixner of Portsmouth pumps gas at the BP station on Main Street.

The price of filling up is going up ... and some consumers are fed up.

A gallon of unleaded gasoline in south central Ohio is about one-third higher than it was this time last year, according to information from the east-central office of the American Automobile Association.

The average price per gallon of unleaded gasoline in the region during the last week of January was $1.47. The price per gallon during that time in 2002 was about $1.01, according to the association.

They attribute the almost 46 cent increase in one year to a combination of factors including uncertainty in the Middle East, labor unrest in oil-exporting Venezuela and an agreement between the Organization of Petroleum Exporting Counties to better comply with production quotas.

These factors have combined to limit the availability of oil on the world market, keeping demand and prices high, according to the association.

The association's energy analysts say they do not expect gasoline prices to move much until the US more clearly states its intentions concerning Iraq.

They say a firm deadline for Iraq's compliance with United Nations inspections may cause higher fuel prices because it increases the chance that war may occur and destabilize the Middle East. American acceptance of continued inspections could result in lower prices because it would reduce that area's instability.

No choice in matter

"It's just ridiculous," said Nancy Gilbert, of Waverly, who purchased $15 in gas Sunday afternoon in preparation for the work week. "I think they're terrible but you have to go to work."

"Really, there's not a whole lot you can do," she said. "You have to get to and from places and they know that."

Gilbert said she has taken some steps to reduce how much gas she uses. She said she recently sold her sports utility vehicle and has reduced her pleasure driving.

"I don't just jump in the car anymore. While I'm out, I try to think about what I need. If I need to stop at the store, I try to do it while I'm going to and from work," she said.

Ways around problem

Other consumers say they often wait for several days before purchasing gas in the hopes that the price will go down, if only by a few pennies.

"I waited about four or five days to see if the gas would be cheaper. I was down to where I had to get it," said Roger Young, of Chillicothe, who also purchased $15 dollars in gas on Sunday.

"I stretch it out as much as possible. When the price goes down, I just fill up. When he price goes up, I stretch my gas out as much as possible," he said. "I have to buy it about every two weeks minimum."

Young said one of the most frustrating things is how quickly the price changes. As a result, no matter how much he shops around and delays, he often feels frustrated.

"I shop for gas. (But) I can fill this car up and go home and five minutes later, the price of gas has changed," he said. "I get aggravated."

(Syed can be reached at 772-9364 or via e-mail at ksyed@nncogannett.com)

Originally published Tuesday, February 4, 2003