Hugo Chávez may have been forced to retreat in Colombia (for FT coverage look here and here) but his influence is steadily increasing in Central America and the Caribbean.

It is not hard to see why. With oil prices surging, the attractions of Petrocaribe – an agreement under which Venezuela sells oil on concessionary terms – are increasing. Guatemala was expected to become the latest state to join at a summit meeting this past weekend and Costa Rica is set to follow suit.