Chavez Threatens to Ax American Oil Shipments if US Interferes in Referendum

Venezuelan President Hugo Chavez has threatened to cut off oil shipments to the United States if the American government interferes in the upcoming referendum in Venezuela. Chavez, unlike in previous elections, has not invited election monitors from the EU or OAS - a move that may lead to claims of voter fraud in what is becoming an ever more contentious referendum in the South American country.

Considering the fact that Venezuela is the US' 4th largest oil supplier, a Chavez implemented ban on oil shipments to the US, combined with already historically high American oil prices could lead to a very uncomfortable situation for President Bush and American consumers. Additionally, it is doubtful that Venezuela would be hard pressed to find buyers for the newly freed-up portion of its oil supply, especially as China continues its high growth.

Chavez is calling on his constituents to repeal the section of the Venezuelan constitution that restricts the president to two terms in a bid to remain in power at the conclusion of his current term, among other major changes. Unlike his re-election campaign last year, there has been widespread protest in Caracas against Chavez's proposed policies - even amongst Chavez's most staunch supporters, the poor.