U.S. State Department: Oil Crash Spreading Political Strife Around The World

Rhiannon Meyers, Fuel Fix: Oil crash spreading political strife around the world, State Department rep says

The collapse in oil and natural gas prices is creating an uneasy situation for producing nations that rely on that revenue to function, a U.S. State Department official said Tuesday at a conference in Houston.

“How long can we go in an environment of $45 to $50 oil at 60 percent reduced revenues before that starts causing significant political instability?” said Amos Hochstein, special envoy and coordinator for international energy affairs for the State Department, told an audience gathered for a conference in downtown Houston. “I worry about that quite a bit.”

WNU Editor: one can also argue that high oil prices also brings political strife around the world. But for the moment .... there is too much oil in the world, and if the political situation in countries like Libya, Venezuela, Iraq, etc. improve .... coupled with the dropping of sanctions for Iran .... there will be even more oil (and lower prices) on world markets.