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2/12/08

EU-Digest/ShareCast - Oil: Venezuela threatens to cut off oil supplies to US


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Oil: Venezuela threatens to cut off oil supplies to US

Venezuela’s President Hugo Chavez has threatened to cease supplies of oil to the US, in retaliation for the court move by US oil giant Exxon to freeze Venezuela’s assets. The news sent the crude oil price racing higher for the third day in succession, despite worries over a possible economic slowdown dampening demand for oil. Crude oil for March delivery hit an intra-day high of $94.72 in New York before easing to close at $93.59. News that Valero Energy had temporarily shut down its Delaware refinery because of a power failure on Sunday also boosted sentiment.

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