Posted on 4/12/2002, 12:39:53 PM by blam
Crude oil price falls as Venezuelan president quits
The price of crude oil has slumped after the president of Venezuela quit under pressure from the military.
Venezuela is one of the world's largest oil exporters, and one of the USA's key suppliers.
Hugo Chavez resigned as president after weeks of political unrest, including strikes at the state-owned oil company.
The industrial action forced Venezuela to cut back exports which, along with the crisis in the Middle East, created fears of a supply shortage.
This meant the price of crude was pushed up, hovering near six-month highs and raising concerns of increases in the cost of petrol.
But the price of Brent crude oil has fallen by 38 cents in London trading today to $24.66 a barrel. Last week, it reached $28.15 a barrel.
Kamal Sharma, currency strategist at Commerzbank, says there are hopes that Venezuela will raise production levels under the new regime.
He says: "What we are seeing at the moment, the ousting of president Hugo Chavez and the implications that Venezuela will increase oil production, means the price is coming under pressure today. It's really a supply story."
On the London Stock Exchange, shares in BP have slipped 2p to 588p; while Shell is down ½p at 499p.
Story filed: 13:29 Friday 12th April 2002
Perhaps we should encourage this by making the new leader an offer he can't refuse.
Chavez amd Carter both going to Cuba to pay homage to Castro. That should tell us something.
Carter will play himself, The Jester.
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