Venezuela ends oil output fear

www.canoe.ca By AP

CARACAS -- Venezuela's state oil monopoly is no longer in an emergency situation and is now able to fulfil its business contracts after output reached 2.6-million barrels a day yesterday, said President Hugo Chavez. Petroleos de Venezuela S.A. declared a "force majeure" in December, meaning a force out of the company's control made it impossible to fulfil contracts to supply oil. The force majeure had been in place since Dec. 5, three days after thousands of oil workers joined a failed general strike to demand early elections. The strike ended last month and Venezuela began gradually restoring production. Last month, PDVSA lifted a force majeure of on three types of crude oil produced in eastern Venezuela. Chavez said the force majeure on the rest of the types had been lifted yesterday. The South American country was the world's fifth-largest oil exporter before the strike, producing 3.2-million barrels a day. Output plunged to 200,000 barrels a day at the height of the walkout, depriving the country of the source of one-half of the government's income and 80% of export revenue.