MercoPress. South Atlantic News Agency

Exxon conflict: Chavez threatens to cut US oil supply

Venezuelan President Hugo Chavez threatened to stop sending oil to the United States if Washington continued to attack Venezuela as he said it had done through an Exxon Mobil lawsuit that has frozen the assets of the world's fifth oil exporter.

Speaking during his Sunday weekly show "Aló Presidente", Chavez said that "a court had ordered the freezing of Venezuelan assets belonging to PDVSA (the government owned oil corporation)â€Â¦if you do freeze assets and harm us, we'll also hurt you. And you know how? We simply won't ship any more oil to the US". Chavez was referring to the legal dispute with the US largest oil corporation Exxon-Mobil over compensation for the nationalization and seizure last year of a project in Venezuela. The US corporation is seeking the freezing of PDVSA 12 billion US dollar assets and has won the first court battle. In practical terms this means that PDVSA, Venezuela's main income source, can't sell certain assets or move some funds while the compensation case is reviewed. Venezuela is among the three main crude suppliers to United States. In spite of the continued confrontation between Chavez and Washington, the administration of President George W. Bush has distanced itself from the Exxon Mobil legal offensive. "Never again will they rob us -- the Exxon Mobil bandits. They are imperial, American bandits, white-collared thieves. They turn governments corrupt, they oust governments. They supported the invasion of Iraq," he said. Chavez, who calls capitalism an evil, accuses big oil companies and large consumer nations of seeking to control the natural resources of major producers such as Venezuela. "I'm telling the American empire, because they are the masters,â€Â¦take note Mister Bush, Mister Danger, if the economic war against Venezuela continues, price of crude could rocket to 200 US dollars per barrel", warned Chavez. Since the Venezuelan government last year nationalized the four oil corporations working in the eastern Orinoco basin project, Exxon-Mobil and Conoco-Phillips refused to reach an agreement with PDVSA. Both companies initiated arbitrage negotiations with the World Bank.