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$ 50 petroleum cup: what does the economy mean? – Blitz



Only a few weeks ago, most of the financial analysts and traders advertised oil at $ 100 for a car.

At the beginning of October, US crude oil marketed about $ 77 a barrel, but has since lost a third of its value and now it's more than $ 50.

What does the global economy mean? Bloomberg shows the possible consequences of "black gold"

Who wins and who loses?

High-energy importers, such as India and South Africa, will be in favor of the winners, such as the main Russian and Saudi Arabian manufacturers.

Central banks, under pressure from rising interest rates, can take a steeper air, with falling fuel prices and falling inflation. On the other hand, those looking for stimulation like the Bank of Japan will face new problems.

The development of the situation will largely depend on demand in the coming months, due to the strength of the dollar, the rise in trade relations volumes and the reaction of large oil producers.

Saudi Arabia is trying to balance Russian interests, that is, a mining-controlled partner, and the US president, Donald Trump, is pushing for the release of offers and reducing prices.

The eyes of this week will be at the G20 summit, in order to find out whether or not Moscow and Riyadh get consensus on production quotas. This will be next week according to the decisions of the OPEC countries.

What will happen to global economic growth?

In the northern hemisphere, winter is already approaching, and low oil prices will help companies and citizens reduce their heating costs, slowing down economic growth. Oil-bearing countries and their negative balance in their current account will have lower prices for raw materials.

For example, China, the world's largest importing oil company, is already struggling to slow its economy and the escalation of the United States trade deal has negative effects. The leading importer also includes South Korea, South Africa, India and Turkey.

How will inflation affect?

Low oil prices have led to lower inflation pressures and weaken the pressure of central banks to raise interest rates. From India, for example, this trend may change the central bank's views in the coming months. The organization was preparing for interest rates, but the decline in consumer price growth decided to postpone this decision.

How new markets are created?

If the oil price drops to $ 10, it goes up from 0.5% to 0.7 of gross domestic product from the importing states, the statistics show in Bloomberg.

However, the same drop has been that Gulf Gulf GDP has reduced 3% to 5% year-on-year. Russia and Nigeria have negative consequences of between 1.5% and 2% of the GDP.

How does cheap oil make the world's largest economy?

United States President Donald Trump is supposedly equivalent to "black gold" redemption tax cuts. In recent years, the United States has significantly reduced the dependence on oil imports thanks to the so-called "revolutionary shadow".

This means that the positive fall in fuel prices will jeopardize the problems with US shale companies. With $ 50 in cash boxes, many of them will not be able to go green, the experts mentioned earlier.


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