US worried about falling output

Washington: The US government is concerned about falling crude oil supplies from Opec member Venezuela, a senior US government official said.

Declining oil output from Venezuela since 2001 "is a concern to world oil markets and has not been helpful to world oil consumers, particularly developing countries in our own hemisphere," the official told Reuters on condition of anonymity.

Venezuelan oil production has fallen to about 2.6 million barrels per day (bpd) versus 3.1 million bpd in 2001, according to the US Energy Information Administration.

The Opec nation's oil industry was severely disrupted by a two-month strike at Venezuela's state oil firm PDVSA that ended in early 2003, cutting off exports to its main customer the United States and pushing up world prices.

The official's comments come after the US Government Accountability Office said oil prices could jump by as much as $11 a barrel if world markets faced another loss of Venezuelan crude.

The United States is the top buyer of Venezuelan oil, but ties have been strained since President Hugo Chavez first won office in 1998. Left-winger Chavez accuses the administration of US President George W. Bush of backing a failed 2002 coup attempt against him.

Washington denies the charges. Chavez says any attempt by the United States to invade the South American nation or assassinate him will result in a suspension of US oil sales.

Venezuelan Energy Minister Rafael Ramirez has rebuffed frequent requests from the State Department to meet with the US ambassador in Caracas, the official said.

"We regret that (Ramirez) has yet to have a substantive meeting with the US ambassador to Caracas given that the United States remains Venezuela's primary oil market and its number one source of foreign exchange," the source said.

The United States and other members of the International Energy Agency could counter such a disruption with their emergency oil stocks, the official said.

"Working with major oil producers and consumers, the United States is able to offset a severe oil supply disruption, including from Venezuela," the official said.