asia.reuters.com Thu February 27, 2003 12:05 AM ET By Pascal Fletcher

CARACAS, Venezuela (Reuters) - The U.S. Embassy in Venezuela said on Wednesday it would close for one day on Thursday because of a security threat received after bomb blasts at two other foreign diplomatic buildings in Caracas.

"The U.S. Embassy in Caracas has received a credible threat to its security and will be closed to the public on Thursday, February 27, 2003," the embassy said in a statement.

"We received sufficiently reliable information of a possible attack so we decided to close for the day," embassy press counselor Phillip Parkerson told reporters.

The mission was expected to reopen Friday, he added.

Embassy officials declined to give further details or say whether the threat was related to powerful bomb attacks that badly damaged the Spanish Embassy cooperation office and the Colombian consulate in Caracas early on Tuesday.

The explosions injured five people less than 48 hours after leftist Venezuelan President Hugo Chavez sharply accused Spain, Colombia and the United States Sunday of meddling in his country's political crisis.

In Washington, U.S. ambassador to the Organization of American States Roger Noriega repeated U.S. condemnation of the bomb attacks. But he also questioned the Chavez government's commitment to honoring a non-violence agreement it had signed with political opponents last week.

"There can be little doubt that President Chavez' belligerent rhetoric has contributed to a climate of tension that does not contribute to the search for a peaceful solution," Noriega told the OAS' Permanent Council.

He added the recent events in Venezuela, including the arrest of a prominent anti-Chavez business leader, "raises questions about the Government of Venezuela's commitment to honoring the non-violence agreement."

Ambassador Jorge Valero, Venezuela's representative to the OAS, said the United States was "making very doubtful interpretations" by linking the bombings to Chavez' rhetoric.

"In the name of the Venezuelan government," he said, "I categorically reject these interpretations."

U.S. OIL INTEREST

The United States, Spain and Colombia had expressed concern over the arrest last week of Carlos Fernandez, one of the leaders of an opposition strike in December and January that slashed oil output by the world's No. 5 petroleum exporter.

Clients affected included the United States, which normally got more than 13 percent of its oil imports from Venezuela.

The State Department said Wednesday it wanted to see Venezuela restore full oil production and resume its traditional position as a "reliable oil supplier" to the U.S..

"We hope that Venezuelans -- both the government and those involved in the strike -- will take the necessary additional steps to return (state oil company) PDVSA to its full production capacity," spokesman Lou Fintor said in Washington.

He was speaking after Assistant Secretary of State Anthony Wayne had talks at the State Department with Venezuelan Oil Minister Rafael Ramirez and PDVSA President Ali Rodriguez.

Anti-Chavez business chief Fernandez is currently under house arrest facing charges of rebellion.

Several thousand anti-government protesters marched in Caracas Wednesday in a show of support for Fernandez and Carlos Ortega, another strike leader who is in hiding after a judge also ordered his arrest.

A Caracas court issued new arrest orders Wednesday for seven other alleged oil strike leaders, local media reported.

Chavez's government has firmly rejected any link between Tuesday's bomb blasts and the president's recent aggressive criticism of the United States, Spain and Colombia.

Ministers suggested the opposition would have more to gain by trying to isolate the government internationally.

Senior government officials met with foreign ambassadors in Caracas Wednesday to coordinate tightening security at diplomatic missions in the Venezuelan capital.

Chavez, who was first elected in 1998 and survived a coup last year, is accused by foes of being a dictator and trying to drag his country toward Cuba-style communism. He says a rich minority elite is opposed to his self-styled "revolution."

No one has claimed responsibility for Tuesday's attacks but leaflets were found at the scene signed by the "Bolivarian Liberation Force -- Coordinadora Simon Bolivar urban militias," a known pro-Chavez radical group. Government officials said the leaflets were intended to mislead investigators.

Noriega said the United States supported ongoing efforts by OAS Secretary General Cesar Gaviria to try to broker a negotiated agreement on elections between the feuding Venezuelan government and its foes.

Gaviria, who was also publicly warned by Chavez Sunday not to meddle in Venezuela's affairs, was due to chair the next session of negotiations in Caracas scheduled for Thursday.

www.news.com.au February 27, 2003

OIL prices have surged to their highest level since the Gulf War and could easily surpass $US40.00 a barrel, analysts have said. "Crude stocks are low and when you get problems in a major producing region such as Venezuela and potential problems in the (Persian) Gulf, another huge producing region, there is only one way prices can go," Commonwealth Bank of Australia chief commodity strategist David Thurtell said.

Overnight oil prices hit a new post Gulf War high of $US37.90 ($62.63) a barrel, up $US1.84 and within reach of the record $41.15 hit in October 1990.

London Brent crude gained 76 cents to $33.08 a barrel.

Driving prices higher was a United States government report revealing a big drop in winter heating fuel stocks as the Bush administration continues to prepare for a possible war against Iraq.

As parts of the US endure a colder-than-normal winter, supplies of heating oil in the week to February 21 fell 3.9 million barrels to 36.1 million barrels, a 33 per cent deficit from a year ago.

The crisis in Venezuela, a major supplier to the US market, has also placed pressure on US inventories.

"It has been a fairly cold winter in the US and that has led to a big demand for heating oil," Mr Thurtell said.

"The problem with that is a big source of supply to the US has been Venezuela and there has been a strike in Venezuela."

Mr Thurtell said that on top these "real" elements impacting oil prices, the market had factored in the possibility of war against Iraq.

"Potentially there is a huge disruption of shipping in the Gulf.

"That is the fear factor and you have those real factors."

Despite expectations that oil prices will strengthen in the short term, shares in leading Australian oil and gas producers Woodside Petroleum Ltd and Santos have reacted indifferently.

At 1503 AEDT, Santos was one cent firmer at $5.83 while Woodside had slumped 22 cents to $10.64.

"It (Woodside) may have something to with their looming production gap but it is hard to know (why the stock has fallen so sharply)," Deutsche Bank energy analyst John Hirjee said.

"It is clear that most investors are thinking on the line that you sell oil equities when the oil prices are high rather than buy, but nonetheless you would expect some response to the underlying commodity given it does have a significant influence on profits."

Woodside still seems to be suffering from negative sentiment after last week reporting a $92 million full-year loss a writing down exploration expenditure and its investment in Oil Search Ltd.

Underlying earnings dipped almost 11 per cent.

Woodside also foreshadowed lower-than-expected production in 2003.

www.thetandd.com By The T&D Staff

The three-week streak of seeing gasoline prices spike upwards has ended. Prices throughout The Times and Democrat Region stabilized this past week. In Wednesday's survey of selected stations throughout The T&D Region, the least-expensive gasoline found sold for $1.459 at the Shell E-Z Shop at U.S. 21 and Highway 22, near Interstate 26 exit 139. At Santee, gasoline sold for $1.479 a gallon for regular unleaded at the Horizon E-Z Shop on Highway 6. In Orangeburg, the least-expensive sold at five area stations for $1.519. See survey for stations.

Fogle's Piggly Wiggly in Neeses also sold for $1.519. The most expensive gasoline of stations surveyed sold in Bamberg and Branchville for $1.579. Stability at the pumps follows a two-week period which saw gas prices rise 7 cents per gallon pushing pump prices to near record levels. The average price for gas nationwide, including all grades, was approximately $1.70 early this week, according to the Lundberg Survey of 8,000 stations. The price was within 7 cents of $1.77, the all-time high recorded by the survey in May 2001. Gasoline cost about $1.63 a gallon on Feb. 7, the date the last survey was taken, an increase of 11 cents over the previous two-week survey. However, like local numbers, Trilby Lundberg sees some light at the end of the tunnel. "The pace of gas prices has already slowed," Lundberg said. "The other indicators show a possible decrease in prices." Increased production in Venezuela, the approach of warmer weather and the reopening of various U.S. refineries which had been idled for annual maintenance are expected to slow or end the price spiral, Lundberg said. Crude oil prices are also up due to fears of war with Iraq, but if the U.S. goes to war, or if the crisis is resolved, experts say that oil bubble will burst. Prices rose 30 cents a gallon in 1990 after Iraq invaded Kuwait and then dropped 30 cents in 1991 following the Persian Gulf War. As The T&D continues its weekly gas survey, we encourage readers to get involved. If you know of a gasoline price consistently lower than those in our survey, let us know by e-mail at news@timesanddemocrat.com, by fax at 803-533-5595 or by phone at 803-534-1060. The prices must be consistently low for inclusion in the survey. Here are some of the prices found Wednesday morning, Feb. 26: Orangeburg -- Li'l Cricket at U.S. 301 and Highway 70: regular unleaded, $1.519. -- Henry's on U.S. 301: regular unleaded, $1.519. -- Dodges Store at U.S. 301 and Cannon Bridge Road: regular unleaded, $1.519. -- Horizon E-Z Shop, Shillings Bridge Road: regular unleaded, $1.519. -- Horizon E-Z Shop, Old St. Matthews Road: regular unleaded, $1.519. -- Hot Spot on Calhoun Drive: regular unleaded, $1.529. -- Speedway, Boulevard Street and Carolina Avenue: regular unleaded, $1.539. -- Gazbah Exxon, Chestnut and Ellis: regular unleaded, $1.539. -- Short Stop, Magnolia and U.S. 178: regular unleaded, $1.539. -- Big D's Shell, Magnolia Street and U.S. 178: regular unleaded, $1.539. Neeses -- Fogle's Piggly Wiggly, Highway 4 and U.S. 321: regular unleaded, $1.519. Bamberg -- 3-Way Food Mart, Main Highway: regular unleaded, $1.579. -- Horizon E-Z Shop West, U.S. 78 West: regular unleaded, $1.579. -- Horizon E-Z Shop on U.S. 301 South: regular unleaded, $1.579. Branchville -- Horizon E-Z Shop, Freedom Road: regular unleaded, $1.579. Holly Hill -- Amoco Food Mart, Old State Road: regular unleaded, $1.499. Santee -- Horizon E-Z Shop, Highway 6: regular unleaded, $1.479. St. George -- Fast Point Food Store, on Highway 78 and Sears Street: regular unleaded, $1.529. St. Matthews -- Amoco, Highway 6: regular unleaded, $1.529.

news.bbc.co.uk Last Updated:  Thursday, 27 February, 2003, 03:42 GMT
By Adam Easton BBC correspondent in Caracas

Protesters are supporting those detained

A judge in Venezuela has ordered that seven former managers of the state-owned oil company be arrested for their role in the country's two-month strike.

The order follows the arrest last week of Carlos Fernandez, one of the strike's two main organisers.

He is now facing charges of rebellion.

Opposition leaders have accused Venezuelan President Hugo Chavez of leading a witch hunt against the country's opposition.

Thousands fired

The seven former Petroleos de Venezuela (PDVSA) managers are all members of the opposition civil group Petroleum People, which was the public face of the oil strike.

They were among 12,000 already fired for taking part in the strike, which virtually brought Venezuela's oil industry to a standstill.

The oil strike cost the country $4bn in lost exports alone, and Venezuela's wells are still only producing between a half and two-thirds of normal production.

President Chavez has called the strikers saboteurs who deserve to be behind bars.

House arrest

The arrest warrants will fuel accusations that Mr Chavez is taking revenge on the strike's leaders.

One of the strike's two main organisers, business leader Carlos Fernandez, is already under house arrest on rebellion charges.

Mr Fernandez heads the Fedecamaras chamber of commerce.

The other organiser - trade union leader Carlos Ortega - is in hiding after an arrest warrant was issued last week.

A source close to the former oil managers told the BBC they were in a safe house awaiting instructions from their lawyers.

It is still not clear what charges they are facing.

Earlier, several thousand people marched in the capital, Caracas, in support of the strike's leaders. Some held placards accusing Mr Chavez of being a dictator.

www.krnv.com

Washington-AP -- Some State Department officials say Venezuela needs to rebuild its status and reliability as an oil supplier. Top officials told a Venezuelan delegation in Washington that the South American nation's political disruptions have created serious doubts about its standing in the oil world.

They were told the way to restore the reputation was for the government and opposition to work out their differences.

The Venezuelan delegation passed on that word to officials in their nation.

Venezuela has been a leading source of U-S oil imports. But a general strike in Venezuela paralyzed the oil industry for a time -- and many analysts chalk that up for part of the low