Maduro heads to Middle East, checks opponents

OREANDA-NEWS. October 24, 2016. President Nicolas Maduro departed Venezuela overnight on a "lightning tour" of the Middle East and possibly Russia, leaving behind a political opposition reeling from the latest government crackdown.

Maduro plans to meet with the heads of state of Iran, Azerbaijan, Qatar and Saudi Arabia to consolidate support for coordinated production restraints aimed at boosting oil prices.

The presidential palace said Maduro also may visit Moscow.

Maduro said he decided on an unplanned "but very necessary trip to consolidate the oil market agreements" between Opec and non-Opec producers to cut output and strengthen the price of oil. Opec countries plan to hold a formal meeting at the end of November to implement a broad accord to limit production.

Maduro said he was traveling to pitch Venezuela's market stabilization proposals and strengthen the resolve of key Opec and non-Opec producers "because imperialism is playing with financial mechanisms to collapse oil prices and hammer Venezuela and Russia and the oil producing countries."

He reiterated that oil's average world price should be at least \\$70/bl. State-owned PdV's average oil export price for the week ending 21 October was \\$43.03/bl. PdV's year-to-date average export price as of 21 October was only \\$33.81/bl.

The government's proposed 2017 budget is based on an average oil price of \\$30/bl, which suggests the energy and economy ministries expect current weak oil prices to persist throughout all of 2017.

Five lower criminal courts in states governed by the ruling United Socialist Party yesterday nullified the opposition's collection of voter signatures to support holding a presidential recall referendum.

Opinion surveys show Maduro would overwhelmingly lose a referendum.

The CNE electoral authority cited the simultaneous rulings by the five judges to immediately call off a 26-28 October process to collect signatures for a referendum from at least 20pc of registered voters in each of the country's 23 states. The move scuttles any chance of holding the referendum.

The opposition MUD coalition has not reacted publicly. Government opponents have been pushing for months to hold a referendum before the end of the year to ensure new elections. If the process were to be held in 2017, Maduro's vice president would take over until formal presidential elections are held in 2019.

The latest developments could spark an escalation of political conflict. In concert with the referendum ruling, separate judges issued orders prohibiting leading opposition figures from leaving Venezuela.