Guardian: Oil prices ease on news of Chávez victory

[Toucano]

http://www.guardian.co.uk/business/story/0,3604,1284210,00.html

Mark Tran
Monday August 16, 2004

Oil prices today eased back from a run of record highs after Venezuela's Hugo Chávez, declared victory in a national referendum on his presidency.

As the prospect of political uncertainly in the world's fifth largest oil-producing country receded, the cost of a barrel of crude peaked at a 21-year high of $46.91 (£25.43) in New York before dipping back to $46.21.

Prices fell after results released by the Venezuelan electoral authorities showed the charismatic Mr Chávez had survived a referendum aimed at toppling him with 94% of the vote counted.

The result came as a relief to the markets amid worries about disruptions to oil exports had a disputed result sparked social unrest. There had been fears that if Mr Chávez had lost, pro-Chávez oil workers might have disrupted production of an estimated at 2.6m barrels per day, but shipments from Venezuela were reported to be running smoothly.