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Lately, President Hugo Chavez has been threatening to sell CITGO, a company that processes much of the 900,000 barrels that Venezuela sends to the United States daily.
Chavez believes it is worth $10 billion usd; analysts say he might get $5 billion.
But many analysts say selling CITGO makes NO strategic sense.
Oil expert José Toro Hardy says``Citgo is the main marketing arm of the Venezuelan oil industry. It would be a severe blow to the country's economy."
Replacing the U.S. with China increases delivery time from the current five days to more than 45 days and freight costs could be one third of the current price of crude. Or shipping crude to Belarus, a country that Russia stopped supplying for non-payment, could take away $30 of the $70 Venezuela currently charges per barrel.
FOR RECENT POST On CITGO SALE, SEE:
http://thehypervigilantobserver.blogspot.com/2010/11/venezuela-chavez-may-sell-citgo-gets-4.html
