Crude oil price falls as president quits

The price of crude slumped today after the president of Venezuela - one of the world’s largest exporters of oil - quit under pressure from the military.

Hugo Chavez resigned yesterday 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. The country is one of the USA’s key suppliers.

It meant the price of crude was pushed up, hovering near six-month highs and raising concerns of hikes in the cost of petrol.

But today Brent crude oil fell, losing 38 cents in London at 24.66 US dollars a barrel. Last week it reached 28.15 US dollars a barrel.

Kamal Sharma, currency strategist at Commerzbank, said there were hopes Venezuela would raise production levels under the new regime.

He added: ‘‘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 market, BP slipped 2p at 588p while Shell dipped ½p at 499p.