Blog Topic #4

This article is about Venezuela. Venezuelan President, Hugo Chavez, has threatened to cut off oil supplies to the United States. Venezuela's state oil company has stopped selling crude oil to Exxon Mobil Corp. as of Tuesday, February 12 and has suspended commercial relations with the U.S.-based oil company. According to the article, Exxon Mobil attempted to seize Venezuelan assets through U.S. and European courts in a dispute over the nationalization of its oil ventures in Venezuela. President Chavez says the suspension of commercial relations with the U.S.-based oil company is an act of reciprocity for the United State's actions. Exxon Mobil is apparently no longer welcome to to business with Venezuela. Venezuela relies heavily on its oil production for income. The U.S. relies on Venezuela for its imported oil. It is unclear how either country will be affected in the long run. It is likely that the Venezuelan economy will suffer slightly with out American business, due to the fact that Exxon Mobil is a major partner and the United States is so dependent on foreign oil.