March 06, 2013 at 15:06 PM EST
How Hugo Chavez’s Death Could Impact the U.S. Economy
Say what you want about Hugo Chavez. Tyrant, socialist, narcissist – he was all those things. Chavez did a lot of things wrong during his 14-year tenure as Venezuela’s president. But oil wasn’t one of them. Now that the controversial Venezuelan leader is dead, it leaves major question marks about his country’s economy. Namely – what happens to all that oil? Venezuela boasts the world’s largest oil reserves. And despite its president’s outspoken distaste for America, Venezuela is the fourth-largest oil exporter to the U.S. at 906,000 barrels a day last year. Will that change now that Chavez is dead? With no successor in place, it’s way too early to tell. But a slowdown in Venezuela’s oil exports could put pressure on oil prices – something that could drive prices at the pump up even further, and potentially tighten the screws on already sluggish U.S. economy. At present, oil exports account for more than 90% of Venezuela’s currency inflows, according to the BBC. However, the country’s economy was the worst performer in Latin America over the past decade in terms of GDP growth. That could be enough to convince Chavez’s successor to diversify Venezuela’s economy away from its overreliance on oil.
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here