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 ?
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:
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.