Oil-rich nations are not so rich anymore: That's a problem for the world

[V.Balasubramani]

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Oil-rich nations are not so rich anymore: That's a problem for the world

The long slide in oil prices, which reached a 13-year low this past week of less than $30 a barrel, means that oil-rich nations are not so rich anymore. And that is potentially a big problem for investors and policymakers in the United States and abroad.

Falling oil revenues will increase the need for Saudi Arabia and other oil producers to raise money, in part by selling investments they have made with their oil wealth.

The more oil prices fall and the longer they stay low, ..


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http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst

 

[yesmohan]

Yes. If this trend continues, one fine morning it will be found that oil is cheaper than the drinking water in Chennai!!

But there exists every possibility of an in fight warfare among the oil producing nations and production will be stopped for some duration for artificial correction of prices.

 

[yesmohan]

The benefit that comes out of the total reduction in oil bill, are not fully passed on to the consumers. The reason / logic may be best known only to the financial experts in the Ministry of Finance, Govt. of India!!

 

[vgane]

The benefit that comes out of the total reduction in oil bill, are not fully passed on to the consumers. The reason / logic may be best known only to the financial experts in the Ministry of Finance, Govt. of India!!

Tomorrow in case Oil skyrockets to $ 100 on account of external strife GOI will be forced to increase prices 2-3 times which will create havoc as we are dependent on oil imports for meeting 80% of our needs! It will affect our financial health adversely! we cannot withstand such shocks!

 

[vgane]

Oil cheaper than actual cost of barrel used for storage!

http://www.independent.co.uk/news/b...arrel-of-oil-including-a-barrel-a6818786.html

 

[CHANDRU1849]

The lifting of ban, to a certain extent, on Iran may be also one of the reasons for fall in price of oil.

 

[biswa]

Not sure why OP says fall in price is problem for US? US, like India is a net importer of oil. It is a problem only for Saudi, Qatar, Venezuela, Russia, Iran, most of them ruled by unsavory characters, if I may add.

 

[vgane]

Not sure why OP says fall in price is problem for US? US, like India is a net importer of oil. It is a problem only for Saudi, Qatar, Venezuela, Russia, Iran, most of them ruled by unsavory characters, if I may add.

I guess once the oil producers encash their investments in bonds then there could be an upward movement of Interest rates in US which would impact the growth in emerging markets!