The Oil Disaster Is Not Over Yet

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Oil prices reached a 3-year low at 76-77 $ following the cut in prices for the US carried out by Saudi Aramco: when will the nightmare end ?

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While somebody may think that, all in all, falling oil prices are a good news to everyone, it turns out it really isn’t. Emerging economies founding their growth on the oil & gas industry are quickly falling into a recession, and this is never good for anyone.

Earlier this week, the state-owned oil gian Saudi Aramco decided to cut its prices for the US and to increase them for Asia and Europe.

The reaction of the market was brutal:

WTI oil

And this is why currencies in Venezuela, Russia and Iran are falling, together with their economies.

Once again, here is the lesson: don’t you even think of founding the economic growth of your country only on one industry.

 

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