Chavez threatens to stop oil exports to US if poll violence

He told thousands of supporters in Caracas that he was sending the army to "protect" all of the country's oil fields ahead of the plebiscite on Sunday calling for sweeping changes to the constitution.

"If 'Operation Pincer' is activated Sunday or Monday, there won't be a drop of oil from Venezuela to the US," Chavez said on Friday, referring to what he has often claimed is a CIA operation to topple him from power.

"If this (referendum) is used as a pretext to start violence in Venezuela, (Energy) Minister (Rafael) Ramirez on Monday will order that oil exports to North America be stopped," he said.

"I have ordered the defense minister... to put in place plans to protect our oil fields and our refineries. As of this night (Friday), they will be protected by the army," he said.

Chavez also deepened a running row with Spain, whose King Juan Carlos recently told him to "shut up," by threatening to nationalise Spanish banks in Venezuela if the monarch did not apologize.

The warnings upped the stakes over the referendum, which polling companies said was too close to call.

Venezuela, an OPEC member, currently exports around 60 per cent of the two million barrels of oil it produces per day to the US, which relies on the South American nation for 11 per cent of its oil needs.

Relations between Caracas and Washington have long been tense, but Chavez has raised his strident anti-US rhetoric several notches as he has fought to have his referendum pass. - DDNEWS