Oil prices ease back after president's Venezuelan poll win

Oil prices eased back slightly from record levels today after Venezuela’s president declared victory in a vote on his position.

The cost of a barrel of crude slipped back to $46.37 (€37.50) in New York from a record peak of $46.91 (€38) after Hugo Chavez said he had won a referendum to remain president.

There had been fears that, if he lost, workers loyal to him might have disrupted production at the world’s fifth largest oil-producing country. Figures released after 94% of the vote had been counted showed some 58% voted to recall Chavez.

The cost of Brent crude oil in London was also down 39c at 43.49 US dollars a barrel.

Uncertainty over the referendum had an impact on the oil price from last week, adding to existing concerns over extremely short supplies.

A string of rallies have been pushing the cost of crude to new records on an almost daily basis.

Fears of terrorist attacks, disruptions to Iraqi crude exports and financial troubles at Russia’s largest oil producer, Yukos, have all fuelled the situation.

Bruce Evers, oil analyst at Investec Securities, said: “With demand remaining as tight as it is and supplies as tight as they are, everything points towards the possibility of higher prices.”

Higher prices have brought further anxiety for motorists, who have been warned to expect another penny on the price of a litre of petrol during August. Air passengers have also been hit as airlines increase their fuel duties in response.

Traders have warned that the cost of a barrel of oil could hit $50 (€40.50) in the near future.