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How will Hugo Chavez's death impact oil prices?

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    Peter Barnes reports from Washington

  • Duration 2:13
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And from our South Florida newsroom and as I mentioned the death -- job is putting the spotlight on the US oil industry.

Of course Venezuela has some of the highest oil reserves in the world bigger than that of Saudi Arabia and as a member of OPEC.

Venezuela's a major exporter of oil here to the United States in fact.

Our nation purchases more than forty billion dollars worth of petroleum products from that country each year.

And that country frankly gives away some oil to folks here Peter -- is an RDC newsroom tonight what what impact of this have here in the state.

Probably not much for now -- oil prices did not move very much on this news they close just under 91 dollars a barrel.

And regular market trading today.

And in after hours electronic electronic trading right now.

It's down just four cents a barrel or so.

As a result the death of Chavez doesn't look like -- we'll have much impact on prices at the pump here.

Now Venezuela as you said is a major oil producer and as the second largest proven reserves in the world after Saudi Arabia.

But it is only the tenth largest oil exporter and while it is America's fourth largest -- source of imported oil it is a distant fourth accounting for about 8% of our total imports in fact our imports from Venezuela have been declining because of our political disputes with the Chavez regime.

Increases in imports from other friendly -- countries and increases in our own domestic production.

As a matter of fact the percentage as a percentage of import -- we cut are purchases of oil from Venezuela.

By more than half in the last fifteen years Venezuela has given away a lot of heating oil to the underprivileged and poor in the United States it's a program -- been quite controversial -- of that.

-- that's right it's been donating heating oil to low income families in several states.

Here in the US through the oil company that it owns Citgo for several years the program.

Originally was a response to the fuel price hike in the aftermath of hurricanes Katrina and -- -- Now it is seen as a big part of Venezuela's.

Oil diplomacy.

It has been controversial here as you mentioned but it is expected to remain in place with the next regime -- -- thank you.

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