CNN: Sabatini on Venezuela's Cheap Oil Problem
CNN: Sabatini on Venezuela's Cheap Oil Problem
AS/COA's Christopher Sabatini explains the risk of low gas prices to Venezuela's economy.
Venezuela's low oil prices are aggravating the country's fiscal debt, inflation, and growing public discontent, AS/COA's Senior Director of Policy Christopher Sabatini told CNN. "[Venezuela] needs the price of oil to be $120 per barrel for it to meet its own fiscal deficit," he said. "Now they're running at about $65 per barrel." Sabatini added that subsidized gas is one of the key issues, but cutting government spending would further diminish President Nicolás Maduro's low approval rating.
