January 15, 2009 11:36AM 

# Someone Is Feeling the Pinch 

By [Juan Carlos Hidalgo](https://www.cato.org/people/juan-carlos-hidalgo) 

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*New York Times*: “[Chávez Lets West Make Oil Bids as Prices Plunge](http://www.nytimes.com/2009/01/15/world/americas/15venez.html?ref=todayspaper)”

No wonder. According to a study by the Deutsche BanK, [Venezuela needs the barrel of oil to stay above $97 in order to pay for government expenditures](https://www.cato.org/2008/10/14/lots-of-red-ink-looms-for-chavezs-venezuela/). It is currently traded at below $40 per barrel.

##### Related Tags 

[Energy and Environment](https://www.cato.org/research/energy-environment) 

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