Saudi Arabia tends to increase production when the U.S. pressures them to, actually.

At this point Chvez doesn't even seem to be threatening to shut down, but just a rather ineffective sanction. He couldn't even lower production without the rest of OPEC, since they all have to do it together or prices wouldn't change much and he'd lose too much of the money he needs for his social and other programs. I don't think they'd follow his lead at this point. I'm sure it's only a matter of time before they cut off production to raise prices again, but it won't be on Chaves's timetable.

If the British and American (and, if Exxon have their way, international) courts decide Venezuela is in the wrong in this case, I don't think political pressure should affect the case, however much it irks President Chavez.

As a side note I also rather question his method of calling every single country that even appears to stand a chance to agree with the U.S. at a single point of time on a single issue a puppet (well, lapdog in the case of Mexico a while back). As if that will inflame British opinion in his favor somehow.

Quote Originally Posted by HoreTore
Chavez is a member of OPEC. And he holds more sway over them than non-members do(like the US). And if he decides to shut down, it's rather doubtful that the other OPEC-members will increase their capacity to keep oil prices down, thus increasing oil prices. Chavez actually has a lot of power when it comes to oil. Besides, what serves the US best; keeping a low oil price, or help one corporation avoid paying for their past corruption?