www.vheadline.com Posted: Friday, March 07, 2003 By: Robert Rudnicki

Venezuelan Federation of Chambers of Commerce & Industry (Fedecamaras) vice president Albis Munoz has criticized the government for taking so long to implement its currency controls, insisting that the longer the measures are delayed the more businesses will be forced into bankruptcy. 

The Currency Administration Commission (Cadivi) had been due to publish a list of approved products the would be seen as essential in terms of dollar applications on its website this Wednesday, but so far the list has not been released.

"The people who are handling this clearly don't have the technical ability to do it," Munoz said of the Cadivi board.

"We are very worried because we've just come out of a civic strike which had already restricted inventories, and now we are experiencing a foreign exchange freeze that has lasted 45 days."

www.vheadline.com Posted: Friday, March 07, 2003 By: Robert Rudnicki

Venezuelan Energy & Mines (MEM) Minister Rafael Ramirez says that Venezuela will support any Organization of Petroleum Exporting Countries (OPEC) decision regarding oil output in the event of a US-led war on Iraq.

This includes the possibility of a temporary suspension of output quotas to increase supply in order to balancer out the loss of Iraqi production.

"We will back any decision the group may take ... that also means a temporary suspension of output quotas."

However, Venezuela is unlikely to pump more than its current OPEC quota of 2.819 million barrels per day as it struggles to recover from the two month work stoppage. Ramirez estimates that this quota will be reached by the end of this month.

english.pravda.ru 11:00 2003-03-07

The government "Corporacion de Abastecimiento y Servicios Agricolas (Government Agricultural Supply and Services Corporation) began distribution of food for the Venezuelan people Thursday, to prevent any shortage of supplies in the national market. CASA president Gerardo Liscano highlighted that, in the beginning, his company is trying to cover the needs of 20 percent of the most vulnerable people in the country.

Eight groups will distribute the food in the market in Caracas and other Venezuelan cities, Liscano said. The official pointed out the food will be distributed in Barquisimetro, Maracaibo, Acarigua, Maracay and Caracas to prevent any possible shortage of supplies in the next few days, "whether it happens naturally or if it is provoked".

CASA is a State-run company that buys food from national companies as well as foreign companies such as the US, Ireland and Argentina, among others, pointed out the official. Liscano stated that this time his corporation will distribute grains, peas, lentils, refined sugar and flour, wheat, sardines, tuna, pasta, rise and powdered milk, among other basic food products.

Liscano said that more food and a greater variety will arrive in Venezuela soon and will be distributed gradually in all national entities through wholesale markets such as Inmerca, Mercabar and Mercamar, among other supply centers in the interior of the country and Caracas.

The government assigned CASA at the beginning of 2003 to purchase basic food products inside and outside the country, after the shortage of supplies caused by the opposition strike in December and January joined by important business people. CASA is also trying to become a strong competitor to force private companies to lower the price of food.

On other issues, Chavez announced PDVSA, the oil national giant, has reached pre-strike production standards. He also added that Venezuela is now able to comply with contracts sealed with foreign customers.

Hernan Etchaleco PRAVDA.Ru Argentina

reuters.com Fri March 7, 2003 06:13 AM ET By Sujata Rao

LONDON (Reuters) - World oil prices held strong on Friday ahead of a key report on Iraq by United Nations weapons inspector Hans Blix.

Markets built on gains of over half a dollar chalked up on Thursday when President Bush accused Iraq of a "willful charade" and called for a new U.N. resolution within days to authorize disarming Iraq by force.

Brent crude futures for April stood 11 cents up to $33.64 a barrel by 5:45 a.m. EST while U.S. light crude CLc1 was steady at $37 a barrel.

"The market is going to be nervous ahead of the U.N. inspectors' report, but it's the diplomatic comment afterwards that is going to be more important," GNI-Man analyst Lawrence Eagles said.

"There will be a huge change in scenario only if there is a compromise that indicates more time will be given for inspections. But most people don't think that will happen."

Bush has called for a speedy second U.N. resolution vote. "We're days away from resolving this issue at the security Council," he said on Thursday. "It's time for people to show their cards, to let the world know where they stand when it comes to Saddam Hussein."

Washington, backed by Britain, has met stiff opposition for a new U.N. resolution paving the way for war from Russia, France and China, which hold veto powers on the Security Council and have called for more time for weapons inspections to continue.

The United States and Britain have moved about 300,000 troops into the Gulf region to launch an invasion of Iraq, which they allege holds biological, chemical and nuclear weapons.

The different points of view have sparked a hectic diplomatic dance with no indication yet of any compromise. Bush needs nine votes out of the 15-member Security Council, but Britain, Spain and Bulgaria are the only certain backers.

Chief U.N. weapons inspector Hans Blix is due to deliver his assessment of Iraq's cooperation with the searches at 1530 GMT.

A copy of the report obtained by Reuters disputes Iraqi claims to have destroyed bio warfare agents. It says Baghdad may be producing banned missiles but encourages more inspections.

ENERGY STOCKS LOW

The threat of war in the world's eighth largest oil exporter comes at a time when world energy stocks are far below normal levels, partly due to a strike in Venezuela which significantly slashed the country's oil exports.

Traders fear a war could disrupt Iraq's two million barrels per day exports, as well as flows from the rest of the oil-rich Middle East, even though the OPEC cartel has pledged to pump extra crude to make up for any loss in Iraqi supplies.

The cartel in January upped production by 1.5 million bpd to make up for the loss of Venezuelan barrels due to a strike.

Venezuela's President Hugo Chavez said on Thursday that crude operations were being restored as he lifted a two-and-half month long force majeure on exports. The force majeure, or formal suspension of contractual obligations, was put in effect soon after the strike began on December 2.

Chavez said crude production was at 2.6 million bpd plus 150,000 bpd of condensate, though rebel oil workers peg output at less than half that figure.

Weather also continues to boost oil prices as below-normal temperatures are forecast in the U.S. Northeast, which is also the world's largest heating oil market. U.S. heating oil stocks last week fell by half a million barrels.

But analysts say this may be the last of heating oil's strength as spring approaches and Venezuelan exports slowly rise.

www.vheadline.com Posted: Friday, March 07, 2003 By: Robert Rudnicki

President Hugo Chavez Frias has sworn in a new board of directors for Petroleos de Venezuela (PDVSA), which will now oversee the restructuring of the company into PDVSA East and PDVSA West.

Ali Rodriguez Araque will remain as company president, while the remainder of the board will be made up of Aides Barreto, Luis Marin, Nelson Nunez, Dexter Rodriguez, Felix Rodriguez, Rafael Rosales and Luis Vielma.

According to the President the selection of the board follows a "difficult, tense and traumatic process, which we are now coming to the end of."

The President said that PDVSA would no longer be able to build on its own agenda, ignoring the realities of the country.