Sunday, December 02, 2007

Venezuelan Referendum: NO Votes Won

This is a sequel to my earlier post on Venezuela.

I actually do not know why I am interested on events happening in a country half way around the globe. It could be because, I am interested on events that would affect the movements in the market i.e. price of oil, forex, metals etc. Venezuela is producing more than 3 million barrels of oil per day.

Anyway, on the news today: NO votes won in the Venezuelan referendum by a very slight margin.

From NY Times:

Voters in this country (Venezuela) narrowly defeated a proposed overhaul to the constitution in a contentious referendum over granting President Hugo Chávez sweeping new powers, the Election Commission announced early Monday.

It was the first major electoral defeat in the nine years of his presidency. Voters rejected the 69 proposed amendments 51 to 49 percent.


So expect a downward movement of oil prices in the coming days (correction), still it would really NOT go low, as everybody wanted it to go, because of the inherent weakness of the US dollar. Until some, if not most, of the oil traded in the world market are priced in a more stable or stronger currency, expect oil to be in the range of 70 -80 dollars for the whole of 2008.