Global Oil Prices Climb As Venezuela Strike Enters Seventh Week

www.voanews.com VOA News 14 Jan 2003, 09:01 UTC

Venezuela's long-running general strike has contributed to a rise in global oil prices as the political strife in the South American nation enters its seventh week.

Crude oil on the New York Mercantile Exchange climbed to $32 per barrel Monday. In London, Brent crude was selling for more than $30 per barrel. Last week, prices reached $33 per barrel before OPEC announced its decision to boost production.

Analysts say the Venezuela unrest and the threat of a U.S. war with Iraq are contributing factors. Both nations are OPEC members.

On Monday, Venezuela's military fired rubber bullets and tear gas to disperse pro-government demonstrators in downtown Caracas. Similar incidents were reported in western Zulia state. Venezuela's opposition called the strike to force President Hugo Chavez to resign and call early elections. He refuses to give in to their demands.

Venezuela's energy minister said Monday the strike has cost the country four billion dollars. Venezuela is the world's fifth largest oil exporter. Meanwhile, President Chavez is expected to meet with U.N. Secretary-General Kofi Annan Thursday in New York to discuss Venezuela's political crisis.

International pressure is building for a solution to the conflict in Venezuela, which usually provides 13 percent of U.S. oil imports. South American leaders are preparing a compromise plan they hope to present to Venezuela to end the crisis. Brazil's new leftist President Luiz Inacio Lula da Silva and the secretary-general of the Organization of American States, Cesar Gaviria, are expected to discuss the plan Wednesday in Quito, at the inauguration of Ecuador's new president, Lucio Gutierrez.

Some information for this report provided by AP, AFP and Reuters.