Chavez's Cheap Oil Gives Him Sway Over U.S. Allies, Aid Funds

[marmar]

from Bloomberg:



Chavez's Cheap Oil Gives Him Sway Over U.S. Allies, Aid Funds

By Matthew Walter


Oct. 6 (Bloomberg) -- President Hugo Chavez has figured out how to use Venezuela's vast oil reserves to increase his regional influence while diminishing U.S. clout: He all but gives it away.

The self-proclaimed socialist revolutionary is allowing impoverished U.S. allies such as Honduras and the Dominican Republic to buy discounted oil with low-interest loans. Then he rebates the revenue back to those countries in the form of aid - - attached to strings he controls.

Venezuela's oil wealth gives it ``much more capacity for an aggressive foreign policy,'' says Jose Manuel Puente, a professor at the Center for Public Policy at the Instituto de Estudios Superiores de Administracion in Caracas. ``You can cultivate and multiply your revolution, and you can create more friction with the U.S.''

Record oil prices have allowed Chavez, 54, to boost spending on such agreements this year. Crude exports from Venezuela, the Western Hemisphere's biggest oil exporter, exploded since 2007.

Crude prices have soared 52 percent since the beginning of last year. In July, they touched a record $147.27 a barrel before retreating to $92.70 on Oct. 3. Revenue at state-owned Petroleos de Venezuela SA rose 69 percent in the first half of the year to $72.4 billion, according to the company's earnings statement.

Chavez's oil-subsidy program is aimed at the 18 Central American and Caribbean countries in Petrocaribe, an alliance he created in 2005. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601109&sid=aUMDzYgZ0h6Y&refer=home

[billyoc]

1. New England would freeze to death without Chavez.

[bullimiami]

2. there was no reason for the us to be antagonistic with chavez.

it is detrimental to the interests of virtually everyone in our country and beneficial to the goals of a small handful.

[Winterblues]

3. What country is the Bush* Cabal NOT antagonistic with

It is all they seem to know. Bush* is the "Decider" and everyone has to do exactly as he says.....or else....