Oil prices fell from fresh record highs today as early reports of victory for Venezuelan President Hugo Chavez in a referendum on his rule eased fears that unrest could upset the country's oil exports.
US light crude oil for September fell 11 cents to $46.47 a barrel, down from an early peak of $46.91 a barrel, which was the highest since the New York Mercantile Exchange launched oil futures 21 years ago. London Brent was down 39 cents at $43.49 a barrel.
Prices fell after results released by Venezuelan electoral authorities with 94 per cent of the vote counted showed Mr Chavez survived a referendum to recall him.
National Electoral Council President Francisco Carrasquero said in a national broadcast the "No" option opposing Mr Chavez's recall had obtained just over 58 per cent of the vote, while the "Yes" vote obtained nearly 42 per cent.
Energy markets have been worried about disruptions to the country's 2.6 million barrels per day (bpd) oil production if a disputed result sparked social unrest. Shipping sources had said shipments from Venezuela, the world's fifth-largest crude exporter were running smoothly.
Two pro-opposition electoral officials questioned the result, saying that procedural checks had not been carried out on the results as required.
Disruption to Iraqi oil flow also hounded the market, with exports remained cut by about half to around 900,000 bpd, since the southern pipeline was attacked by saboteurs, and as a US offensive against followers of cleric Moqtada al-Sadr spread to several cities.
Oil is up more than $10 a barrel since the start of the year. In real terms, adjusted for inflation, prices are still well below 1980s peak of $80, following the Iranian revolution. But prices have surpassed those of 1974, the first oil shock, when crude averaged an inflation-adjusted $43 during the Arab oil embargo.