Venezuela to Decide Today Whether to Keep Its Current President

To me, Venezuela’s election ( or refrendum) could be a very important one as the outcome could have consequences for U.S. oil supplies.Venezuela, the world’s fifth-largest oil exporter, supplies about one-eighth of U.S. petroleum needs.And we all know how sensitve USA is when it comes to Oil supply…

Venezuela to Decide Today Whether to Keep Chavez

The two sides in the presidential recall vote say that only fraud can deprive them of victory.

By Carol J. Williams, Times Staff Writer

CARACAS, Venezuela — In a vote that may bring fresh confrontation instead of closure, Venezuelans decide today whether to recall President Hugo Chavez two years before his term ends or stick with the man of the masses who insists that relief from poverty is just around the corner.

The outcome could unleash violence among the profoundly polarized people of Venezuela, with both supporters and opponents of the 50-year-old president saying that only massive fraud can deprive them of victory. The assertions have heightened tensions in one of the most acrimonious disputes this nation has faced.

The outcome could have consequences for U.S. oil supplies. Chavez’s energy minister, Rafael Ramirez, warned of “chaos and instability” if the president’s opponents prevailed and reversed changes made in the oil industry to steer profits into social welfare. Venezuela, the world’s fifth-largest oil exporter, supplies about one-eighth of U.S. petroleum needs.

Venezuela’s 14 million registered voters have a choice between “yes” to oust Chavez, and “no” to reject the recall. Polls sponsored by the two sides produced contradictory results, leaving observers and analysts uncertain about what to expect in a city bedecked with a seemingly equal number of tricolor “Si!” placards and the red “No” exhortations.

For Chavez to lose, at least 3.76 million “yes” votes are needed — the number that gave him a six-year term in the 2000 election.

Chavez’s power base is estimated by pollsters to be about 30% of Venezuela’s 25 million people, with the strongest support coming from the poor. A roughly equal share of the middle class and elite despise the former army colonel and paratrooper, saying he has steered the economy down a path of communist-style revolution that has reduced per capita income, foreign investment and employment.

Should the recall succeed, Chavez would be obliged to hand over power to his vice president, Jose Vicente Rangel, and elections would be held in 30 days.

Chavez said it was “mathematically impossible” for him to be voted out of office but vowed to go peacefully if that was the people’s decision.

His opponents contend that Chavez’s confidence stems from plans to hijack the vote. Miranda state Gov. Enrique Mendoza, a key figure in the Democratic Coordinator opposition alliance who is expected to run for the presidency if Chavez is ousted, last week had threatened to disclose the results of independent exit polling by midafternoon as a safeguard against government cheating.

Venezuelan law and the National Electoral Council, on which three of the five governors are unabashed Chavistas, prohibit any voting results from being released before the council announces the full tabulation.

Mendoza’s warning added fresh vitriol and suspicion to the already bitter contest, as did the introduction of electronic voting machines and fingerprint registration, which has stirred fears that ballot secrecy and security could be compromised.

The state-of-the-art touch-screen voting machines installed in polls for all but about 2 million voters have been tested in the presence of international observers and deemed reliable and tamper-proof. Likewise, the fingerprinting has been deemed a good defense against double-voting in a country where identity cards can be bought for a few dollars.

Still, in an environment where suspicion is sky-high, the introduction of the new technologies has compounded the tension and fears of vote manipulation.

Also at issue are irregularities that have surfaced at the eleventh hour, such as the disclosure last week that 50,000 voters have had their polling places inexplicably changed.

On international issues, opponents have complained that Chavez has sacrificed ties to the United States and other Western nations in favor of his friend Fidel Castro. Chavez sells discounted oil to cash-strapped Cuba in return for the services of 12,000 Cuban doctors, teachers and engineers, who are working here to improve living conditions in urban slums.

“The problems of Venezuela are not local problems. The government is giving encouragement to destabilizing movements throughout Latin America,” said Ramon Escovar Salom, a former U.N. ambassador. “Cuba is omnipresent today in Venezuela. It occupies the first place in our foreign relations now even though the Cuban revolution has clearly been a total failure.”

U.S. officials, who have made no secret of their dislike of Chavez and his close ties to Castro, have toned down their comments in the waning days of the campaign. Secretary of State Colin L. Powell appealed to Venezuelans to exercise their voting rights “freely, fairly and transparently” to bring an end to the crisis that has gripped this nation since a short-lived coup against Chavez in April 2002 that Washington initially applauded.

Valter Pecly Moreira, who heads the Organization of American States delegation, said that he was surprised by the calm and confidence prevailing on the eve of the vote, given the coup, strikes and violence during the last two years.

“Maybe one explanation,” Moreira said, “is that both sides are so convinced they will win.”

Venezuela’s Chavez Survives Recall Vote
6:17 am PST, 16 August 2004

Amid charges of fraud by the opposition, Venezuelan President Hugo Chavez has apparently survived a recall election.

The populist Marxist president was not yet declared the outright winner by Francisco Carrasquero, president of the National Elections Council. But he released figures showing Chavez in a commanding 58-42 percent lead, with 94 percent of the vote counted.

For his part, Chavez – a former army paratrooper – claimed victory from the palace in Caracas.

“It is absolutely impossible that the victory of the ‘no’ be reversed,” Chavez told thousands of supporters.

Carrasquero said 4,991,483 votes had been cast against Chavez’s recall, with 3,576,517 in favor.

http://7am.com/cgi-bin/wires02.cgi?1000_2004081601.htm

Oil price dips after fresh record

Economists say that despite Venezuelan respite underlying trend is causing real damage

Ashley Seager and Mark Milner
Tuesday August 17, 2004
The Guardian

Oil prices set a fresh record early yesterday of close to $47 a barrel before falling back on relief that a referendum victory for President Hugo Chávez in Venezuela would be likely to ensure that crude keeps flowing from the world’s fifth largest producer.

The poll result was sufficient to boost stock markets around the world which were relieved that oil prices, which had set a record in 11 of the past 12 trading days, had stopped rising, for now at least. The Dow Jones industrial average closed up 129 points, or 1.3%, to 9,954 in New York while the FTSE 100 closed 48 points better at 4,350.

Jitters about the Venezuelan referendum on Mr Chávez’s rule had pushed US light crude to $46.91, the highest in the 21-year history of the New York Mercantile Exchange. Further disruption to Iraqi oil exports and warnings that the financial problems at Russian oil giant Yukos could hit supplies added to the pressures pushing up prices.

However, they later slipped back to $46.05 after news that Mr Chávez had won. There had been fears that workers at oil plants might have gone on strike if he had lost. Venezuela produces 2.6m barrels per day, about 3% of global output.

In London, Brent crude futures slipped back to $43.66 after hitting a new record of $44.11, the highest since Brent futures began trading in 1988.

Some analysts think the dip could prove short-lived, however, especially as the fighting in Iraq continued. Militia set fire to an oil well in southern Iraq as part of an ongoing attempt to disrupt oil exports. The attacks have already succeeded in cutting them in half to about 900,000 barrels per day.

Oil prices are up over a third since the beginning of the year and by a quarter since the end of June as demand continues to roar ahead at a time when global supply is running flat out with little margin for error.

“With demand as tight as it is and supplies as tight as they are, everything is pointing to the possibility of higher prices,” said Bruce Evers, oil analyst at Investec Securities.

Allowing for inflation, oil is still well below the peak of more than $80 a barrel hit around the time of the Iranian revolution in 1980 but is above the level seen after the first oil shock of 1973-4.

Economists are starting to worry about the impact of rising oil prices, particularly if they go much higher and stay there. Steven Fries, deputy chief economist at the European Bank for Reconstruction and Development, said soaring prices could be behind the recent apparent slowdown in the United States economy.

“It is also slightly negative for other OECD countries and for most of the countries in central and eastern Europe,” he said, adding that he did not expect them to suffer a recession on the back of the current oil price. “It is just not a big enough shock.”

The German Bundesbank warned that if oil prices continue rising, it would present a “serious risk” to the current growth outlook for Europe’s biggest economy.

But Fadel Gheit, oil analyst with New York brokerage Oppenheimer & Co, believes oil prices are poised for a big fall.“$45 per barrel is a shock for the world economy although it will take six months for that impact to be really felt. But when the first tanker of oil leaves the Middle East and there is no buyer, prices will fall off a cliff,” he said.

Opec, the oil producers’ cartel, is pumping flat out, at a 25-year high of 30m bpd. Saudi Arabia has pledged to pump “as much as fields allow” to cool prices.