Oil price plunge a panacea for crude-reliant Asia but negatives loom for some countries
A renewed plunge in oil prices is a worrying sign of weakness in the global economy that could shake governments dependent on oil revenues. It is also a panacea as pump prices fall, giving individuals more disposable income and lowering costs for many businesses.
Partly because of the shale oil boom in the U.S., the world is awash in oil but demand from major economies is weak so prices are falling.
The latest slide was triggered by OPEC's decision Thursday to leave its production target at 30 million barrels a day. Member nations of the cartel are worried they'll lose market share if they lower production.
Brent crude, a benchmark for international oils, was at $72.50 a barrel on Friday, down nearly 30 percent in the past three months and at its lowest in four years. U.S. crude oil slid 7.5 percent to near $68 a barrel on Friday and is down 27 percent over three months.
OPEC countries and other major oil exporters will feel the biggest negative impact.
Posted on Fri, November 28, 2014
by The Lafourche Gazette