Oilman downplays his nation as supplier to U.S.

Russia's oil reserves are three times larger than the official estimate of 50 billion barrels and the country is poised to serve as reserve supplier to the U.S. market when prices climb too high, the head of the country's second-biggest energy firm said yesterday.

18:05 2001-12-03 VENEZUELAN ENERGY MINISTER EXPECTS RUSSIA TO BRING ITS OIL EXPORTS FURTHER DOWN--[Full text] The OPEC member states hope Russia will bring its oil exports further down. The measure would help OPEC stabilize the world's commodity markets and return to fair oil prices, Venezuelan Energy Minister Alvaro Silva Calderon says in a statement circulated Monday by the OPEC Secretariat General in Vienna.

According to his statement, Calderon plans on visiting Moscow some time soon to discuss with Russian Energy Minister Igor Yusufov the world's current situation with petroleum and with fuel at large. Among others, he is going to raise the issue related to the prospective reduction of quotas on the recovery and export of crude oil. OPEC will reduce the quotas if major oil producers, including Russia, Mexico, Norway and Oman, cut down on their oil exports by 0.5 million barrels a day, altogether.

In the Venezuelan minister's opinion, the OPEC member countries have been "somewhat disappointed" by Moscow's decision on a mere 50,000-barrel cut. [End]

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Meanwhile as the price of oil drops and Hugo Chavez's Bolivarian Revolution gets a bad review,
Venezuelans see the opportunity to reclaim their independence from the dictatorial Castro ally, Hugo Chavez.

Venezuelans protest against President Hugo Chavez in Caracas February 8, 2002. Another Venezuelan military officer spoke out against Chavez, condemning him as a threat to democracy as supporters and opponents of the maverick left-wing leader staged rival protests for a second day.
The sign shows the head of Chavez in a wok. REUTERS/Kimberly White

Second Officer Blasts Chavez Amid Protests--Country on "cliff's edge"

Venezuela's bolivar takes big tumble BY ALEX KENNEDY- Bloomberg News [Full text] CARACAS - Venezuela's bolivar had its biggest one-day fall in six years on speculation the central bank may curb foreign exchange trades after raising its discount rate to 50 percent from 40 percent, fueling demand for dollars.

The currency fell 10 bolivars, or 1.3 percent, to 782.50, its largest one-day drop since June 28, 1996. The bolivar has lost 1.9 percent the last two days and 3.8 percent this year, the fifth- worst performance among 56 currencies tracked by Bloomberg.

Currency traders said the bank sold about $300 million in the last two days to stem the bolivar's decline. The central bank raised the discount rate, the rate its sells short-term loans to commercial banks, to take bolivars out of circulation and ease dollar-demand. It was the fifth rate increase in two months.

''To increase rates that much is a sign of desperation,'' said Benito Berber, an analyst with research firm IDEAglobal.com in New York. ``I wouldn't be surprised if they raised rates to 70 percent, but it may not matter -- nobody wants to have their money stuck when exchange controls are imposed.''

Domingo Maza, one of seven central bank directors, Wednesday said demand for dollars had been ''extraordinary'' recently, due to weak oil prices, a widening budget deficit and rising political tensions.

Central Bank President Diego Castellanos said in a release that government spending cuts to keep the 2002 fiscal deficit to 4 percent or less of gross domestic product would allow the bank would keep a strong bolivar.

Domingo Maza said the bank is not planning to limit dollar purchases, but admitted the bolivar is overvalued, citing analysts who estimate an overvaluation of 10 percent to 50 percent.

Dollar demand has been fueled in recent months on a decline in the price of oil, which accounts for half of government revenue.

Increased tension between Chavez and opposition groups has also led to a surge in dollar buying. [End]

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