>So has the strike been borken or not?
Production Halt in Venezuela Drives Crude Prices Higher
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NEW YORK -- Crude prices inched higher in late-afternoon trading Tuesday, after one of the world's largest oil refineries temporarily halted operations due to the strike in Venezuela.
Crude for January was up 8 cents to $30.18 a barrel in late trading on the New York Mercantile Exchange. January heating-oil futures fell 1.14 cents to 84.50 cents a gallon. January gasoline lost 1.85 cents to 86 cents a gallon, and January natural gas lost 9.1 cents to $5.250 per million British thermal units.
Curacao's Refineria Isla, which receives most of its oil from Venezuela, suspended the production of gasoline, jet fuel and propane Monday, said Norbert Chaclin, the refinery's technical-services manager.
The Curacao refinery reduced production two weeks ago after a general strike called by Venezuelan opposition leaders who want President Hugo Chavez to step down. The strike, nearing its third week, has prevented many oil tankers in Venezuela from leaving the port.
Mr. Chaclin said the refinery can't get enough oil to restock its supply and customers have turned to other refineries for their oil.
"Our inventories of heavy crude are limited to six days, medium crude for around 12 days and light for 15 days," Mr. Chaclin said.
Many countries that traditionally bought oil from Venezuela, such as Jamaica and St. Vincent, have turned to other countries for oil.
Jamaica, for example, received 60% of its oil from Venezuela, or about 35,000 barrels per day. Since the strike, however, Jamaica has been forced to import more oil from other countries like Ecuador and Mexico, said Winston Watson, of Jamaica's oil company, Petrojam.
Once the strike ends, it will take Refineria Isla at least six days to have all units back at normal levels, Mr. Chaclin said.
The refinery is owned by Curacao's government but is operated by Petroleos de Venezuela SA, Venezuela's state-owned oil company.
Prices sharply ran up Monday, topping the $30-a-barrel mark for the first time in two months, but started declining earlier Tuesday on profit-taking.
Still, the complex didn't lose too much ground as the strike entered its 16th day, with the country's oil production poised to fall below the current level of around 400,000 barrels per day as domestic storage facilities become close to full and port strikes make any shipment virtually impossible.
Venezuela's army chief criticized the strike aimed at toppling the country's president, dimming opposition hopes for military disobedience to President Hugo Chavez.
"Mr. Chavez seems to have support of the army; that's got to be helpful to him," said Mike Fitzpatrick, analyst at Fimat USA, Inc.
Mr. Chavez has relied heavily on the military to break the strike, deploying troops to guard gasoline stations, commandeer delivery trucks and seize striking oil tankers.
Despite his efforts, the strike -- which is strongest in the vital oil industry -- has strangled petroleum exports, depleted food supplies and sparked incessant pro- and anti-government protests.
Opposition leaders criticized Mr. Chavez on Monday for ignoring courts that ordered him to give back seized gasoline delivery trucks and return control of the Caracas police department to the city's opposition mayor. Mr. Chavez told military commanders Sunday that he -- not the courts -- issues their orders.
Negotiations between the government and the opposition made little progress Monday, said mediator Cesar Gaviria, the secretary general of the Organization of American States.
Tuesday, the OAS unanimously approved a resolution in "support of democratic institutionally in Venezuela."
The 34-member body has given no direct support to Mr. Chavez and has paved the way for Western Hemisphere countries to take other steps at a foreign ministers" meeting if the Venezuelan crisis gets worse.
Elsewhere, a senior Iraqi general says Baghdad will comply with a U.N. demand for a list of scientists involved in its chemical, biological and ballistic missile programs, after a day of searches in which weapons inspectors visited at least 13 sites.
There is also renewed fear that the U.S. will be in a position to launch an early attack on Iraq as preparations for war continue. U.S. Secretary of State Colin Powell said that he remains "skeptical" about the Iraqi report on its weapons of mass destruction.