Falling oil prices: Who are the winners and losers?

Global oil prices have fallen sharply over the past seven months, leading to significant revenue shortfalls in many energy exporting nations, while consumers in many importing countries are likely to have to pay less to heat their homes or drive their cars.

From 2010 until mid-2014, world oil prices had been fairly stable, at around $110 a barrel. But since June prices have more than halved. Brent crude oil has now dipped below $50 a barrel for the first time since May 2009 and US crude is down to below $48 a barrel.

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Litwin said:

Venezuela is down for sure, which one comes the next ? Muscovy, Algeria or Nigeria? my guess , it´ll be Muscovy, too big for an empire in 2017 , too cold and poor. what do you think?

"Global oil prices have fallen sharply over the past seven months, leading to significant revenue shortfalls in many energy exporting nations, while consumers in many importing countries are likely to have to pay less to heat their homes or drive their cars.

From 2010 until mid-2014, world oil prices had been fairly stable, at around $110 a barrel. But since June prices have more than halved. Brent crude oil has now dipped below $50 a barrel for the first time since May 2009 and US crude is down to below $48 a barrel.

The reasons for this change are twofold - weak demand in many countries due to insipid economic growth, coupled with surging US production.

Added to this is the fact that the oil cartel Opec is determined not to cut production as a way to prop up prices.

So who are some of the winners and losers?"

"Russia" is one of the world's largest oil producers, and its dramatic interest rate hike to 17% in support of its troubled rouble underscores how heavily its economy depends on energy revenues, with oil and gas accounting for 70% of export incomes.---

Falling oil prices: Who are the winners and losers? - BBC News

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Litwin said:

Venezuela is down for sure, which one comes the next ? Muscovy, Algeria or Nigeria? my guess , it´ll be Muscovy, too big for an empire in 2017 , too cold and poor. what do you think?

"Global oil prices have fallen sharply over the past seven months, leading to significant revenue shortfalls in many energy exporting nations, while consumers in many importing countries are likely to have to pay less to heat their homes or drive their cars.

From 2010 until mid-2014, world oil prices had been fairly stable, at around $110 a barrel. But since June prices have more than halved. Brent crude oil has now dipped below $50 a barrel for the first time since May 2009 and US crude is down to below $48 a barrel.

The reasons for this change are twofold - weak demand in many countries due to insipid economic growth, coupled with surging US production.

Added to this is the fact that the oil cartel Opec is determined not to cut production as a way to prop up prices.

So who are some of the winners and losers?"

"Russia" is one of the world's largest oil producers, and its dramatic interest rate hike to 17% in support of its troubled rouble underscores how heavily its economy depends on energy revenues, with oil and gas accounting for 70% of export incomes.---

Falling oil prices: Who are the winners and losers? - BBC News

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DaveFagan said:

Russia was not hurt as badly as one would think. The ruble crashed for a relative value of 35 to the dollar to 65 to the dollar and oil is priced in USDollars, so even though the cost of oil dropped in half, so did the ruble and when the oil paid for in dollars was exchanged back to rubles, the balance prevented a great Russian crash. The 17% interest was a great move to counter sanctions and bring investment capital to Russia. Russia invested in domestic infrastructure to produce products on the sanctions list and now has developed a high degree of independence and no need for those imports, simultaneously benefitting the Domestic economy.
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Litwin said:

Venezuela is down for sure, which one comes the next ? Muscovy, Algeria or Nigeria? my guess , it´ll be Muscovy, too big for an empire in 2017 , too cold and poor. what do you think?

"Global oil prices have fallen sharply over the past seven months, leading to significant revenue shortfalls in many energy exporting nations, while consumers in many importing countries are likely to have to pay less to heat their homes or drive their cars.

From 2010 until mid-2014, world oil prices had been fairly stable, at around $110 a barrel. But since June prices have more than halved. Brent crude oil has now dipped below $50 a barrel for the first time since May 2009 and US crude is down to below $48 a barrel.

The reasons for this change are twofold - weak demand in many countries due to insipid economic growth, coupled with surging US production.

Added to this is the fact that the oil cartel Opec is determined not to cut production as a way to prop up prices.

So who are some of the winners and losers?"

"Russia" is one of the world's largest oil producers, and its dramatic interest rate hike to 17% in support of its troubled rouble underscores how heavily its economy depends on energy revenues, with oil and gas accounting for 70% of export incomes.---

Falling oil prices: Who are the winners and losers? - BBC News

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SouthernDemocrat said:

Russia's economy is a disaster. Their per-capita GDP was over 15k in 2013 and is now less than 9k. We did not see that kind of drop even during the Great Depression in the United States. In just 4 years the standard of living in Russia has gone down to third world status.

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DaveFagan said:

Russia was not hurt as badly as one would think. The ruble crashed for a relative value of 35 to the dollar to 65 to the dollar and oil is priced in USDollars, so even though the cost of oil dropped in half, so did the ruble and when the oil paid for in dollars was exchanged back to rubles, the balance prevented a great Russian crash. The 17% interest was a great move to counter sanctions and bring investment capital to Russia. Russia invested in domestic infrastructure to produce products on the sanctions list and now has developed a high degree of independence and no need for those imports, simultaneously benefitting the Domestic economy.
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SouthernDemocrat said:

Russia's economy is a disaster. Their per-capita GDP was over 15k in 2013 and is now less than 9k. We did not see that kind of drop even during the Great Depression in the United States. In just 4 years the standard of living in Russia has gone down to third world status.

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DaveFagan said:

When the Ruble value crashed in half, per capita GDP would have instantly halved. The cost of all imports would have doubled, ergo manufacture domestically. Simultaneously the cost of Russian exports, especially military, dropped in half and that was good for their economy. The USA was attempting to bankrupt Russia because Russia foiled the USA/Ukraine coup d'etat by snatching Crimea from the flames. The Economic Arm of Full Spectrum Dominance in action. Sanctions. Credit restrictions. International Settlement restrictions. Banking sanctions. At this time the USA is doing all they can to decrease the relative value of the USDollar to improve export trade because they know they can't cut wages enough to become competitive.
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