[sageb1]

"The more oil we can buy below the standard price, the better. He'd just sell the same oil elsewhere at a higher price."

True, but Chavez is using it to gain support for his dictatorship. It is a bribe.

[reformedliberal]

Let's see if the bribed remain bribed. I have seen a lot of ingratitude toward the US and our generosity over the years.
I doubt the recipients are going to bless Chavez. More than likely, they will continue to expect this sort of discount and complain mightily if it isn't continued in perpetuity.

Can someone from the NE explain why there is still so much usage of fuel oil for heating, there? Here in the Midwest, I recall when the oil companies were coming around to remove our old oil tanks. Most of us had switched to propane. In the country, I see a lot of those outdoor wood boilers for hot water heat. Even in the towns, where natural gas is used, the cost has caused folks to switch to pellet stoves.

Posters commenting on the fungible nature of oil have it right, IMO.