Venezuela cuts US gasoline distribution
Venezuela to halt petrol supplies to 1,900 US filling stations (Andy Webb-Vidal, FT)
Venezuela's state-owned oil refining subsidiary in the US is to halt petrol distribution to about 1,900 filling stations in the US, although the company denied yesterday the decision was motivated by tensions between Caracas and Washington.
Citgo, which is wholly owned by Petróleos de Venezuela, said the decision to stop supplying some 15 per cent of its 13,100 US brand-bearing franchises had been taken for business reasons.
[snip]
"We are short [of] about 130,000 barrels a day of gasoline that's required to meet out customer obligations," he said. "We have to purchase that on the open market and that places us at a competitive disadvantage."
But the timing of the decision by Citgo, effectively run by the Venezuelan government, coincides with fresh diplomatic tensions between Venezuela and the US, as well as the start of the summer driving season. A senior Republican aide in Washington said yesterday: "This decision raises the question of whether Citgo is in fact having problems with its refining capabilities."
Given the politicization of every aspect of Venezuela's energy sector under Hugo Chavez, it wouldn't surprise if this were a political move. Then again, that same politicization could well be responsible for refining shortcomings. Neither possibility is especially encouraging.
Posted by Kevin Whited @ 07/13/06 10:21 | International | Technorati
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Comments
Just Like US set up Coup by School of Americas Graduate Venezuelan Military Leaders and immediately Recognized Coup Government.. US Lost when Chavez in Secret Prison on Margarita Island was Released By Army Group Jailers!
Naw, That Was Not Political!!
It's Like "Freedom Fries".... Political If "THEY" Do It and "PATRIOTIC" If WE Do It!
Posted by Retired USMC.. @ 15:27 on 07/16/06
The deficiency may well be mine, but I don't have the slightest idea what you are trying to say.
Posted by Kevin @ 15:29 on 07/16/06
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