How oil price fall will impact the world: 1) Weaken Mr. Putin, may even force him to resign with Russias economy shattering (big business leaving his side). Russia failed to diversify its trade and commerce, which is hurting it now, if somehow Mr. Putin manages to adopt and keep the economy afloat, west ll face a far more aggressive and challenging Russia. 2) May force Iran to abandon its nuclear programme due to financial crunch. 3) ISISs main source of income is black market of oil, falling oil prices will weaken ISIS financially. 4) Terror fundings ll lower from middle east. 5) Operators in US might be forced to shut their Shale Gas extractions if oil prices fall below $20 level. Saudi has money reserves to back itself till then. 6) Europe, China dealing with deflation, slowing, stagnating economies which may push the world in deeper recession. 7) Indias effort to push for manufacturing in India wont benefit as expected, due to lower world demands and slowing world economies. Steel sector is already getting jitters. Lower economic growth of India ll mean, lower generation of jobs (below the expected levels). But it ll help the government reach the fiscal targets faster..!!
Posted on: Mon, 12 Jan 2015 06:14:26 +0000