Plunging Oil 'To Spark More Global Tensions' In 2015 -- CENT News
United Kingdom - The oil market faces an uncertain outlook in 2015 as tumbling prices resulting from global oversupply stoke geopolitical tensions in key producers of crude, analysts say.
Oil prices have lost around half their value since June, punished by abundant supplies, a stronger dollar and weak demand in the faltering world economy.
Losses accelerated in late November when the Organization of Petroleum Exporting Countries (OPEC) -- which pumps out one-third of the world's oil -- decided against cutting its output despite the supply glut.
Prices subsequently hit a series of five-year lows in London and New York, rocked also by 2015 oil demand forecast downgrades from both OPEC and the International Energy Agency watchdog.
At the OPEC meeting on November 27, kingpin Saudi Arabia and other Gulf monarchies opposed a cut to the cartel's daily output ceiling of 30 million barrels.
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More News On The Impact Of Plunging Oil Prices
Shockwaves From Oil Plunge Hit Stocks, Currencies -- WSJ
Oil plunge takes price below $55 a barrel -- CNN
Oil spill: As the oil price plunges, gloom and ill-will, oddly, abound -- Economist
Oil producers to lose $1tn if price below $60 –- Goldman Sachs
Collapse in oil prices: producers howl, consumers cheer, economists fret -- The Guardian
What do falling oil prices mean for the global economy? -- Inside Story
Ticking time bombs: Where oil's fall is dangerous -- John W. Schoe, CNBC
My Comment: What's my take ... if you are an oil consumer ... this is great news. If you are an oil producer .... trouble ahead. On the macro level .... the big winners will be countries like China, Japan, to a certain degree the U.S., as well as most European countries. Third world/non-align nations will also benefit. Losers .... the U.S. shale industry and the financial institutions that support them, OPEC nations , Canada, Norway, and Russia.
3 comments:
Don't forget Venezuela, Nigeria, Libya and those countries actively searching for untapped deposits.
I also forgot to add South Sudan, which just hit the first year anniversary it's own civil war. The oilfields are controlled by President Kiir's forces, so the falling prices are likely to help the Machar's rebels.
Venezuela and Nigeria are a part of OPEC. But Catholic Dragon you made a good point on South Sudan. I will be posting a report on that conflict later tonight.
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