Cuba, China, And Venezuela: A New Axis Arises. Oil: Refinery Concerns On The Rise. Stocks Stuck In The Mud.
by Dr. Joe Duarte,
Dallas, TX, April 25, 2005 , 08:00 EST
Stocks are stuck in the mud. The major indexes have still not resolved their issues with the 200 day moving average. Rising oil prices are back. And this week offers new economic data to move the markets. Wednesday could be a very interesting day, as oil supply data will be released.
Today’s Analysis: Cuba, China, And Venezuela: A New Axis Arises.
U.S. citizens taking photographs of Venezuelan infrastructure were recently arrested, prompting Venezuelan President Hugo Chavez to claim that the United States is planning to attack his country.
According to CNN.com: “Venezuela's President Hugo Chavez said Sunday that a woman linked to the U.S. military had been arrested while photographing a military installation, and several U.S. citizens were also arrested for taking pictures of a refinery, signs, he added, that Washington may be plotting an invasion of his country.” According to Reuters, the arrest of the unnamed woman, reportedly a U.S. naval officer occurred several months ago. She was not identified by Reuters. And her whereabouts, at the time of the report, were not reported.
Chavez provided few details about the arrest, but warned, during his weekly radio show that ["If she or any other U.S. official does this kind of activity again, they will be imprisoned and face trial in Venezuela."] According to the CNN report “He also said that the other detained Americans were journalists caught while taking pictures of El Palito refinery, some 100 kilometers (62 miles) west of Caracas. They were released.”
The actions coincide with the sudden ending of military ties between Venezuela and the United States. Chavez, last week notified five U.S. officers in Venezuela, by phone, that they would be asked to leave the country. According to reports, he cited that U.S. officers were spreading negative ideas about him, to the Venezuelan military, fomenting anti-Chavez feelings in his military.
Cuban Directive Strengthened
The timing of Chavez’ announcements and moves to further separate Venezuela from the U.S. are not accidental. According to Reuters “Venezuelan President Hugo Chavez will visit Cuba this week to promote exports of everything from sardines to chocolate and forge a new bond in the alliance between his oil-rich nation and the Communist-run island.”
The deal is fairly simple. Chavez ships oil to Cuba, and Cuba offers services to Chavez. “Cuba pays for the oil with medical and educational services. More than 20,000 Cuban doctors, dentists, sports trainers and other technical experts now work in Venezuela. Cuba watchers say the shipments of crude and refined products have increased beyond the 53,000 barrels per day agreed to in 2000 and are closer to 78,000 bpd, with little evidence of cash payments for the $1 billion-plus oil bill.”
Chavez will be opening a trade fair in Havana this week in which he is launching a barter based trade zone with Cuba.
In fact, Cuba’s major export these days, aside from bizarre ideology is physicians, to places like Africa and Venezuela. There are some who believe that at least some of the doctors may be spies, and military advisors in disguise.
Rogue
