By Bruno Gremez

Winners &Losers fromthe recentdrop in OilPrices

In a recent article on BBC news

Tim Bowler discusses how oil

prices across the world remained

quite stable from 2010 to the

summer of 2014. During this

epoch they hovered around the

price hovered around $110 a

barrel. However, prices have

dropped nearly 50% since the

beginning of summer this year.

Brent Crude Oil has dropped to

$60 a barrel, a price that

hasn’t been seen in more than

five years. Additionally US

crude has decreased below $55.

By Bruno Gemez

There are two primary factors

responsible for this sharp

decrease according to Bowler.

Firstly, weak economies in many

countries has led to less

demand, and US production has

increased markedly. Tim Bowler

also adds that OPEC’s decision

to not prop up oil prices by

limiting production. Here’s a

list of the nations and

organizations that are most

heavily impacted by these recent

events.

By Bruno Gemez

Simply put, Russia’s is quite

dependent on oil. Some experts

estimate that gas and oil

account for around 70% of the

nation’s export incomes. With

each dollar decrease in the

price of oil, Russia stands to

lose over $2 billion in revenue.

Bowler points out that if oil

remains at the same price,

Russia’s economy could shrink by

.7% this upcoming year. However,

Russian authorities have

confirmed that they will not

lessen production levels.

By Bruno Gemez

Russia

As the world’s top oil producer,

Saudi Arabia is one the more

influential members of OPEC.

Given their prominence, they

could help prop up global prices

by cutting down on the country’s

production. However, Saudi

officials have indicated they

have no interest in doing this.

Bowler explains that Saudi

Arabia may be hoping to place

pressure upon America’s emerging

shale oil and gas industry. The

nation’s $700 billion in

reserves will allow them to

survive this downturn.

By Bruno Gemez

Saudi Araiba

Bowler reports that the surging

oil production in America has

reached the highest level in

more than three decades. This

growth, particularly from

hydraulic fracturing, has served

as one of the primary sources of

the drop in oil prices.

By Bruno Gemez

U.S.A.

Although Venezuela is one of the

world’s top oil producers, it

often finds itself in precarious

situations due to mishandling of

the economy. The nation now sits

on the brink of a large economic

downturn, which has put nation’s

leaders in a difficult position.

They have indicated that they

are not going to cut back on the

$12.5 billion they spend on oil

subsidies each year. This

position is quite warranted,

however, as an increase in

petrol prices in the late 1980’s

led to rioting and hundreds of

deaths in the nation.

By Bruno Gemez

Venezuela