Venezuela Government: Opposes War, But Won't Use Oil As Weapon

Source Monday March 31, 10:50 PM

CARACAS -(Dow Jones)- Despite staunch opposition against the U.S.-led war in Iraq, Venezuela won't use oil as a weapon and will continue to be a secure supplier of crude oil and refined products to the U.S., the nation's Oil Minister said Sunday.

"The position that we have always maintained within OPEC, and that is the policy of our government, is that oil should not be used as a political weapon," Rafael Ramirez said in a televised interview.

Venezuelan President Hugo Chavez has sharply criticized the attack of U.S. and British forces on the regime of Saddam Hussein. Venezuela is one of the top four suppliers of crude oil and products to the U.S. and supplies a bit more than 13% of all U.S. imports.

Venezuela has made efforts to improve its image as a secure supplier after a devastating strike hit the nation's oil company from December last year until February this year.

About 35,000 employees walked off their jobs in early December, crippling oil production and exports. Only during the past few weeks has the oil sector shown signs of significant recovery. Production is estimated at somewhere between 2.4 million and 2.8 million barrels per day by secondary sources, while oil exports are seen slightly above 2 million b/d. Venezuela's pre-strike production level was 3 million b/d.

By Fred Pals, Dow Jones Newswires; 58212-5641339; fred.pals@dowjones.com;