Falling Gas Prices - The Bigger Picture Keep Your Eyes Open The United States: Low oil prices will help the economy, but many oil companies will be pushed toward bankruptcy and could lead to banking crisis. Europe: Oil prices will be a significant economic boost. However, sanctions are hurting European businesses, especially those with large operations in Russia. Watch for Europe to try to come to reach a compromise with Putin. Also watch for a core of European nations to congeal around Germany for protection from Russia. Saudi clan: Low oil prices are making big enemies in Iran and Russia and may cause nations like Venezuela and Nigeria to default on debt, possibly igniting an emerging-markets economic crisis. Iran: Danger levels are shooting up. What will Iran do to boost oil prices? In the face of Western hostility, watch for Russia to support Iran, even offer diplomatic cover for radical action. Low oil prices may actually spur Iran to make the last leaps over the nuclear threshold. Russia: Putin is a wild card. It makes sense for him to deescalate tensions with Europe to buy time to expand ties with China and secure Russia’s eastern flank. But the ruble has lost a lot of value, sanctions are hurting his economy, and falling oil prices threaten to push Russia into a severe recession. Sometimes desperate situations lead to dramatic actions. ~The Trumpet
Posted on: Wed, 31 Dec 2014 16:18:14 +0000
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