Caracas OPEC conference - Violence threatens

Venezuelan President Hugo Chavez hosts the 141th Extraordinary meeting of the Organization of Petroleum Exporting Countries on Thursday and today (Tuesday) said that US$60 (euro47) was " a fair" price for a barrel of oil and the world market was "sufficiently supplied" due to overproduction. At this price, a portion of Venezuela's Orinoco Tar Sands become economically viable, and Venezuela can officially increase its proven reserves to 312 billion barrels -- 50 billion barrels more than Saudi Arabia.

Oil prices have risen again above US$72 (Euro56) ahead of the OPEC meeting in Venezuela and the start of the Atlantic hurricane season later this week. Light sweet crude for July delivery rose 90 cents to US$72.27 a barrel on the New York Mercantile Exchange. It had closed on Friday at US$71.37 a barrel.

July Brent crude at London's ICE Futures exchange gained 78 cents to $71.37 a barrel.On Tuesday, Nymex gasoline futures shot up by almost a nickel a barrel to $2.1850 a gallon as memorial Day ended , the start of the US driving season as schools shut for the summer..

In 1998, when Hugo Chavez was elected president of Venezuela. oil was hovering around US$10 a barrel. It is a deep irony that US policies have seen oil soar and the money pumped from the US into Venezuala foloow it, at US$200Mn a day every day .. to lubricate the social change in Venezuala and elsewhere in South America that the neo- neanderthals in Washington hate so much.... therefore it is interesting to note that ...

Venezuela Vice President Jose Vicente Rangel said in a statement that Venezuelan authorities had information regarding "preparations for a plan to generate violence in the street" during the cartel's meeting, which begins on Thursday in Venezuela's capital.

"The intention of initiating actions in Caracas amid the next OPEC meeting exists, its aim is to project the image abroad of chaos in Venezuela," Rangel added.

Rangel did not specify which opposition groups were planning protests. He said the government would not permit "calm and security to be affected" and was calling on the population "to reject any alteration of public order."

Dozens of police, national guardsmen and protesters were wounded in 2 days of clashes at Venezuela's autonomous Universidad de los Andes in Merida, near the Colombian border.
Several police were shot and seriously wounded by some protesters who carried submachine guns, shotguns and pistols, authorities said. The “disturbances” come as a result of last Wednesday’s Venezuelan Supreme Court decision postponing ULA student elections, which were scheduled to be held on May 31st. In its decision, the court declared the elections would have to be postponed because there existed “rational doubts about the competence” of the University Center Federation’s ability to administer its own elections.

National Assembly Representative, Tarek El Aissami, yesterday identified the group Movimiento 13 de Marzo (March 13 Movement) and its student leader Nixon Moreno, as being behind the violence and disturbances.His anti-chavista counterpart in the Caracas student federation is called Stalin Gonzalez!

Moreno, former Student President of the ULA has been a ULA student for the past 10 years , blames last week’s violence, not on the students, but on the Venezuelan National Guard.

"Someone protesting with an Uzi is not a student," Interior Minister Jesse Chacon told a news conference, adding that officials were investigating possible links with Colombian paramilitary groups.

One to keep your eye on ... there are forces who would well enjoy an incident at the OPEC meeting....pic is of armed rioters in Merida.