Venezuela threatens to stop US oil sales over Exxon

By Saul Hudson

CARACAS (Reuters) - President Hugo Chavez on Sunday threatened to stop sending oil to the United States unless it halted an "economic war" that he said included an Exxon Mobil lawsuit freezing $12 billion in Venezuelan assets.

The anti-American leader of a major crude exporter to the United States also warned that such U.S. aggression could cause world oil prices to spike to $200 a barrel.

Oil prices rose this week in part because of the self-styled socialist revolutionary's dispute with the largest U.S. company over compensation for Chavez's nationalization last year of an Exxon Mobil Corp project.

The administration of President George W. Bush has distanced itself from the Exxon legal offensive, in which the oil company won international court orders freezing assets of the state oil company PDVSA.

"If you freeze us, if you really manage to freeze us, if you damage us, then we will hurt you. Do you know how? We are not going to send oil to the United States, Mr. Bush, Mr. Danger," Chavez said on his weekly TV show.

"Venezuela will join in your economic war and other countries will be with us in the economic war," added the ally of oil producers such as Iran and Ecuador.

Chavez has frequently issued conditional threats to stop shipments to its biggest oil customer, but has maintained supplies despite clashing with Washington over everything from crude prices to free trade to democracy.

"Never again will they rob us -- the Exxon Mobil bandits. They are imperial, American bandits, white-collared thieves. They turn governments corrupt, they oust governments. They supported the invasion of Iraq," he said.