What Does Oil Plunge Mean to Global Economies?
The Associated Press reports that “a renewed plunge in oil prices is a worrying sign of weakness in the global economy that could shake governments dependent on oil revenues. Yet it is also a bonus for consumers as prices fall at the pump, giving individuals more spending money and lowering costs for many businesses.”
“The latest slide follows OPEC’s decision to leave its production target at 30 million barrels a day. Member nations of the cartel are worried they will lose market share if they lower production.”
“Partly because of the shale oil boom in the U.S., the world is awash in oil at a time when demand from major economies is weak, so prices are falling. Citibank analysts wrote in a report Thursday that global supplies exceed demand by about 700,000 barrels a day now.”