OPEC Crushed Further: Brent At $45

Oil producing nations woke to more painful news that Oil shed more dollars  to settle at $45 pb.

It is worrying for the nations for three reasons.

For most of them,oil is their only source of revenue. And most of them are very profligate because they, for some reason, believe that the industrialised World will always buy oil.

Mountains of debt: As the oil  sells for less that half the price they are used to ( It was $100 pb in November 2014) the deficit has crumbled economies.

Nigeria,Venezuela,Angola ,are not able to pay basic wages .Most companies who face closures have simply let workers go.

Venezuela,was in Saudi Arabia this week to beg for a cut in
productions."The only way out is to cut production quotas" the minister who represented president Monduro told Saudi officials.

But nobody is cutting anything.

Samsung Nigeria has asked workers to take a pay cut . Those who agree would earn 25,000 Naira( $100) a month. State are asking president Buhari to help arrange for foreign loans.
Some have got but not enough.

The fall in oil has also affected other commodities .

In Singapore Thursday, prices for copper, Iron ore and lead shed 30 points. In January those products were at an absolute 100%

All this came as news broke that Japan may be facing a recession and other Asian emerging markets have halted.
Share on Google Plus

About ossy ilumah

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.