Plunging Oil Prices May Trigger Unrest In Oil Producing Countries

Plunging Oil Prices May Trigger Unrest -- Mark Thompson, CNN

A global glut of oil will persist next year, putting further pressure on prices and raising the risk of unrest in some producing countries.

That's the stark warning from the Paris-based International Energy Agency, which on Friday cut its forecast for global demand growth in 2015. It now sees demand growing by less than 1% next year.

Oil prices have already fallen by more than 40% in six months, but there's little sign of that stimulating demand yet, or constraining production enough to remove excess supply.

"Oil price drops are sometimes described as a 'tax cut' and a boon for the economy, but this time round their stimulus effect may be modest," said the agency, which monitors energy market trends for 29 of the world's wealthiest nations.

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My Comment: And oil prices continue to fall .... Oil tumbles towards $62 on supply glut (Reuters). My prediction still holds that Venezuela will be the first country to face unrest because of falling oil prices .... With Oil Revenues Plunging, Venezuela Is Facing A Major Economic Crisis.