There is a sudden fear in the global market for the consequences of dropping oil prices. What's interesting is that the fear and losses due to this price drop in oil is very selectively ruining certain countries way beyond it is effecting others.
An interesting point to notice is that US has suddenly increased its oil production since 2008 by 50% owing to oil fracking in states like Texas and North Dakota. Also,US's crony Saudi Arabia/OPEC has refused to cut down the oil production irrespective of the price drop.
Another imperative point to consider here is certain countries like Iran and Russia 's economy is heavily dependent on Oil as a source of income for the government apart from taxes and would be hugely effected with oil prices drop. For instance, we saw the biggest drop in Russian Roubles since 1998 due to plunging oil prices to below $60 a barrel and thus had to increase the interest rates to 17%. Moreover, the fiscal deficit would increase.
Strange coincidence is somehow with the oil prices drop, it's the US enemies that are largely impacted than anyone else. So, is it US trying to manipulate price to revenge its enemies - given US economy is not dependent on Oil Export. Or is it that Saudi Arabia trying to hurt US fracturing industry to make them go out of business to clear out its competition in oil production. Well! Its for you to decide if it is a mere coincidence or planned act of economic war, what I know is US Dollar is strengthening :) !!
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Another imperative point to consider here is certain countries like Iran and Russia 's economy is heavily dependent on Oil as a source of income for the government apart from taxes and would be hugely effected with oil prices drop. For instance, we saw the biggest drop in Russian Roubles since 1998 due to plunging oil prices to below $60 a barrel and thus had to increase the interest rates to 17%. Moreover, the fiscal deficit would increase.
Strange coincidence is somehow with the oil prices drop, it's the US enemies that are largely impacted than anyone else. So, is it US trying to manipulate price to revenge its enemies - given US economy is not dependent on Oil Export. Or is it that Saudi Arabia trying to hurt US fracturing industry to make them go out of business to clear out its competition in oil production. Well! Its for you to decide if it is a mere coincidence or planned act of economic war, what I know is US Dollar is strengthening :) !!
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