Venezuela Halts Oil Sales to Exxon Mobil

[jpak]

http://biz.yahoo.com/ap/080212/venezuela_us_oil.html?.v=9

CARACAS, Venezuela (AP) -- Venezuela's state oil company said Tuesday that it has stopped selling crude to Exxon Mobil Corp. in response to the U.S. oil company's drive to use the courts to seize billions of dollars in Venezuelan assets.

Exxon Mobil is locked in a dispute over the nationalization of its oil ventures in Venezuela that has led President Hugo Chavez to threaten to cut off all Venezuelan oil supplies to the United States. Venezuela is the United States' fourth largest oil supplier.

Tuesday's announcement by state-run Petroleos de Venezuela SA, or PDVSA, was limited to Exxon Mobil, which PDVSA accused of "judicial-economic harassment" for its efforts in U.S. and European courts.

PDVSA said it "has paralyzed sales of crude to Exxon Mobil" and suspended commercial relations with the Irving, Texas-based company.

<more>

[sabbat hunter]

1. shooting itself in the foot

I think Chavez is having Venezuela shoot itself in the foot in this matter. It needs US refineries to refine its heavy to extra heavy crude oil.

Being that the US gets about 1 million barrels of oil per day from venezuela they need us as much as we need them. Perhaps more so, considering that the oil from Venezuela is hard to refine, not every country can take it in.

ExxonMobile is a disgusting company with its price gouging, etc but Chavez isn't helping matters any in this case.

[One_Life_To_Give]

2. Citgo also refines Venzualen crude

Not sure just how much crude Exxon was buying or what countries they were refining it in. But as I recall a good chunk of US imports go thru a Citgo owned refinery.

Then again what countries court system is Exxon using?