Venezuela's Petrocaribe oil-supply pact expands to include Guatemala

Tag : Oil

Venezuelan Oil Minister Rafael Ramirez said the pact "strengthensnations in the region facing a difficult market." He was referringto oil prices that have topped US$140 a barrel.
Oil economist Mazhar al-Shereidah believes soaring prices havemotivated countries including Guatemala to join. But the agreementis an economic "sacrifice" for Venezuela, he said.
Al-Shereidah added that while Chavez's critics say he is using thepact to expand his political influence in the region, such aneffect may be minimal.
Referring to Chavez's 2006 bid to gain Venezuela a seat on the UNSecurity Council, al-Shereidah said: "None of his friends supportedhim."
Venezuela says it is sending more than 200,000 barrels of oil a dayunder Petrocaribe to 17 countries in Latin American and Caribbean.Member nations pay for half of the cost of the oil within 90 days,and for the other half in the next 25 years at a fixed interestrate of 1 percent.