Venezuela's Chavez: More Oil Production Cuts

Hugo Chavez

Hugo Chavez easily won re-election as president of Venezuela on Sunday. Chavez called his re-election--a defeat for U.S. President George Bush. Chavez said he will continue to use Venezuela's oil to expand social welfare programs--and continue to challenge the U.S. in Latin America. It's no secret the two men don't like each other.

Both Iran and Venezuela are calling to reduce OPEC's oil production even more. They want anywhere from 500,000 to 1 million barrels cut each day.

CNBC's Sharon Epperson reports on how this is effecting oil prices. She notes that crude prices have been lower in the morning--as traders keep an eye on OPEC's next meeting in 10 days. And she says softer oil prices could cut back the growth of the Venezuelan economy--which has been strong because of higher oil prices and a high U.S. dollar.

Sharon talks about the dollar--saying the recent fall is one part of the equation for OPEC. A lower dollar could help OPEC ministers decide to cut production.