Will Declining Oil Prices Bring Unrest In Oil Producing Countries?

Members of an Iraqi oil police force guarding a field near Basra last week. Iraqis have protested shortages of government services. Credit Essam Al-Sudani/Reuters

New York Times: From Venezuela to Iraq to Russia, Oil Price Drops Raise Fears of Unrest

Oil, the lifeblood of many countries that produce and sell it, appears to be rapidly turning into an ever-cheaper economic curse.

A year ago, the international price per barrel of oil was about $103. By Monday, the price was about $42, roughly 6 percent lower than on Friday.

In oil-endowed Iraq, where an Islamic State insurgency and fractious sectarian politics are growing threats, a new source of instability erupted this month with violent protests over the government’s failure to provide reliable electricity and explain what has been done with all the promised petroleum money. In Russia, a leading oil producer, consumers are now paying far more for imports, largely because of their currency’s plummeting value. In Nigeria and Venezuela, which rely almost completely on oil exports, fears of unrest and economic instability are building. In Ecuador, where oil revenue has fallen by nearly half since last year, tens of thousands of demonstrators pour into the streets every week, angered by the government’s economic policies.

WNU Editor: The impact of falling oil prices on oil producers can be seen in currency drops .... 3 charts explain how oil is roiling world currencies (CNBC), but the real impact is on governments that are dependent on oil revenues to finance their operations. Venezuela, Nigeria, Iraq, and Libya are probably the four most vulnerable nations to this ongoing oil price collapse.