Venezuela has paid off 70% of the US$220 million owed to the World Bank
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THE INTERNATIONAL FORECASTER editor Bob Chapman writes: Work is in progress with the World Bank on US$200 million in projects involving water and sanitation in urban areas, environmental protection, improving conditions in the slums and community development for indigenous groups.
Recently Brazil, Argentina and Mexico have paid back billions of dollars in loans from the IMF and other lenders with the help of strong export earnings.
Venezuelan oil shipments to the US fell 6% in the first four months of the year as President Chavez Frias follows his plan to diversify Venezuela’s customer lease. More oil is going to China and India, markets 7 times more distant than the US. The switch costs Venezuela an additional $3 a barrel ... but higher prices take up the difference.
The situation of Venezuelan supply is very important to the US. Our administration in Washington has tried to assassinate President Chavez and has twice tried to keep him from winning office.
Quite frankly the neocons are getting exactly what they deserve.
Unfortunately, it is the American people who have to suffer ... we expect over the next four years that Venezuela will phase out a majority of oil sales to the US and they will sell off CITGO.
The Senate Foreign Relations Committee met last month to discuss Venezuela’s reliability as an oil supplier ... they are concerned and they should be. Our foreign policy is simply dreadful.
The GAO says a six-month loss of Venezuelan crude would raise oil prices $11.00 a barrel. We see that as almost inevitable. Senator McCain says find alternative oil supplies ... we say where?
The Chinese have already been there and done that while our elitist lunatics have been invading and occupying countries to steal their oil. The problem is not the oil producers; the problem is our whacko government run amok. Venezuela can sell its oil to whomever it pleases and that now includes new clients such as China, India, Jamaica, Haiti, Paraguay and Bolivia.
- What else are we to expect when the Bush administration seeks to overthrow a democratically duly-elected government? Talk about a destabilizing force. Venezuela’s moves alone over the next few years will take oil over $100 a barrel.
President Chavez’ idea to build a $4.7 billion pipeline across Colombia would cut 10 days off the trip to Asia and make for higher profits. It makes lots of sense.
Talks over supplies of military aircraft for Venezuela are underway with Russia. Russia delivered 3 out of 15 MI-17V5 H1P-H multipurpose helicopters in March and supplied 30,000 of 100,000 Kalashnikov assault rifles under a $59 million contract in June.
They are now negotiating the sales of several dozen of SU-30MK Flanker C Air superiority fighters to replace US F-16s.
Venezuela will increase oil exports to China by 300,000 barrels a day, up from 168,000 presently. Oil production is expected to rise to 2 million bpd.
Bob Chapman
THE INTERNATIONAL FORECASTER
P. O. Box 510518, Punta Gorda, FL 33951, USA
http://www.vheadline.com/chapman
