The petro-states could be left scraping the barrel by this crisis

A few weeks ago, folks were busy claiming that this financial crisis and the ensuing recession would mark the end of American hegemony. But, as the Washington Post points out in its editorial today, it is America’s enemies who look like they are going to be hardest hit by it. Those petro-states that have been buoyed up by the high-oil price, are in a far weaker position now oil is $65 a barrel. As the Post puts it:

“Unless oil prices quickly recover, Venezuela’s Hugo Chávez and Iran’s Mahmoud Ahmadinejad are likely to face even tougher domestic economic challenges in 2009 than the next U.S. president. According to independent estimates, both countries need an average oil price of up to $95 a barrel to fund the populist subsidies and social programs they have launched in recent years — not to mention billions of dollars in arms purchases from Russia. Venezuela has been furiously importing food to fill empty shop shelves, while Iran heavily subsidizes domestic fuel.