Why Oil Price Must Rise for the Stability & Growth of Global Economy

06:38:00

The Global economy is goingtowards downwards spiral. Russia, China, Japan, EU, Brazil all are struggling to revive their economy . Regarding Middle East countries they are worst hit area. The real culprit is drastic fall of oil which dented many countries such as EU, Whole Middle East, Venezuela, Russian economy. Most of the developed countries gets big orders from Oil generating countries as well as other product line. The fall in oil price prompted these countries to halt any further upgrade and went into current account deficit.


In my point of view, the competition between OPEC controlled countries attitude to keep the Shale gas producer out of the business impacted the initiator dearly. OPEC countries also refused to reduce the production quota in a fear of losing market share to non OPEC oil producing countries. In my point of view, both OPEC and Non OPEC Oil producing countries should sit together to create an strategy to stabilize the Oil price around $65 to $70 per barrel so that these countries start making some money and get some free cash flow which they can reinvest in their economy. In the current scenario, it wont be far when Oil producing countries with huge pile of cash burns most of their cash in order to maintain their countries social security. The new order from these countries will reignite the cascaded order process which will lead to new employment and revival of the organization.

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