For some countries the drastic reduction in crude price has a devastating effect. Most of these countries are into production and refining. The reduction in prices has been due to over production and low demand. This status is going to be further fueled by lifting embargo on Iran and its entry into the oil market.
In spite of global reduction in the prices the cat and mouse game goes on with the recent upsurge. In US the swing has been highly volatile with as much as eleven percent rise. Will the price stabilize is at best a conjecture albeit production cut is being talked about among the OPEC and other producers. The recent slump has been the cause of loss for many oil majors like Shell and BP.
For UK the slump has been good for the economy resulting rise of wages. According to BBC the heaviest losers are:
Russia with over seventy percent of export income arising from energy.
Venezuela is one of the largest exporter of crude and hence has been hot hard by the slump.
Venezuela is one of the largest exporter of crude and hence has been hot hard by the slump.
Saudi Arabia can bear the slump for a longer time thanks to its fund reserves.
For more information read: Impact of falling crude
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