Chavez renews oil threat to US

2005-03-04 13:14

New Delhi - Venezuelan President Hugo Chavez renewed a threat on Friday to halt oil supplies to the United States if Washington "hurts" the Latin American country.

Relations between Venezuela, which exports the bulk of its oil to the United States, and Washington have been badly strained since Chavez last month accused Washington of plotting to have him assassinated.

"If there is any aggression, there will be no oil," Chavez, who arrived in New Delhi on a four-day visit to India told journalists, the Press Trust of India reported.

"We want to supply oil to the US. We're not going to avoid this supply of oil unless the US government gets a little bit crazy and tries to hurt us," he said after a ceremonial welcome at the presidential palace.

The US state department has dismissed Chavez's accusations that Washington is seeking to have him killed as "ridiculous and untrue".

Venezuela is the world's fifth-biggest oil exporter and is among the largest suppliers to the United States.

Chavez, who is on a trip to India where energy will top the agenda, began alleging Washington was planning his death after the United States criticised some of his government's actions as "deeply troubling".

Earlier this month, Chavez told a news conference in Uruguay that the United States would not receive a drop of oil if he were killed.

Asked whether the Organisation of Petroleum Exporting Countries (Opec), of which Venezuela is a member, would increase output to cool current near-record prices, Chavez said on Friday the cartel was "producing enough".

"(The) increasing price of oil has nothing to do with Opec. It is the structure of the market," he said, adding that Opec was evaluating factors at work.

Chavez has struck oil deals with various countries including China since last year and is due to sign long-term pacts in the oil and gas sector with India during his visit.

Energy-hungry India, which imports nearly 70% of its fuel needs, has been scouring the world for new supplies to keep its fast-growing economy on track.

Chavez met Petroleum Minister Mani Shankar Aiyar on Friday and later told a business conference in the Indian capital that Venezuela was keen to share its "oil potential" with India.

"We want to have a long-term agreement for crude oil supplies with India. We want to help India...share our oil potential with you," Chavez told the conference.

The leftist-populist Chavez has progressively distanced Venezuela, Latin America's only Opec member, from the United States in favour of cooperation with other nations.

The visit by Chavez is the first by a president of Venezuela to India.

- AFP