Hugo Chávez, the Venezuelan president, has taken measures to counter the effects of decreasing petro-dollars. The president has reduced his support to foreign allies and is poised to make deeper cuts at home and abroad as oil prices plunge.
The energy-producing nation relies on oil for half of its export revenues and 95% of government revenue. As prices collapse so too are Chávez’s socialist dreams at home and in his Latin American neighbours.
Chávez has already announced plans to postpone construction of a $4 billion refinery in Nicaragua, a key anti-US ally, and has announced tougher terms for subsidizing oil exports to some Caribbean countries.