Referendum romp

Venezuela | Strongman president survives a recall but puts no rifts to rest | Priya Abraham

At the news that Venezuelan President Hugo Chavez had triumphed in a recall referendum, the world oil market rallied. Record high per-barrel prices on crude oil dipped for the first time this summer after a controversial Aug. 15 referendum, fueled by relief that civil unrest in the world's fifth-largest oil supplier would not—for now—cut the flow of Venezuela's 3 million barrels a day.

Immediate political stability—and Mr. Chavez—won big. "Venezuela has changed forever," he said in a victory speech from a flag-draped balcony of his presidential palace. "There is no turning back."

His words were no comfort to stunned opposition groups who tried to wrest Venezuela's democracy from Mr. Chavez's dictatorial clutch. Since taking power in 1998, his leftist-populist policies have alienated the country's business and middle classes. His close friendship with Cuba's Fidel Castro irritates the United States and other Latin American democracies.