Last week oil prices reached a high of $US27 bbl after news that Iraq would freeze oil exports for 30 days in response to Israeli incursions into the West Bank. Prices slipped when Saudi Arabia announced in response that it would provide enough oil to meet demand.
Industry analysts have estimated that the price of oil has risen $US3 to $US5 a barrel because of the conflict in the Middle East, Iraq's suspension of oil export and the crisis in Venezuela.
Venezuela is the world's fourth largest oil exporter and the second largest source of US oil imports. The labour crisis in the country was precipitated by Chavez's boardroom shuffle at Petroleos de Venezuela (PDSVA), Latin American's largest oil company. Dissident executives and employee demanded the resignation of a new management board appointed by the President.
"These people have become saboteurs of a company that belongs to all Venezuelans," said Mr Chavez, who vowed to overhaul the state oil giant "from top to bottom".
