Brent falls below $60
What seemed unlikely is no more impossible. While many are speculating further downslide, charts suggest otherwise. For those oil exporting countries, their revenue is halved, their economy will be hurt badly. But fundamentals of oil pricing would come back kicking in quickly. Further low crude price would not leave any profits on the table for oil producers, many would get out of this business, reducing supply glut and prices may hold on or come back to $80/barrel.
But this sharp fall in oil price has put pressure on those who made a living out of that surplus money in the oil pricing. Those organizations funded by oil money appear to be starved now and the attack on humanity in the neighboring country of India would be a side-effect. Though this is gross speculation, if it has any truth in it, we would see more violence before those organizations disappear or become smaller in size.
Value of Russian Rubble takes big hit
Putin might be wondering in private that there is no power left in his MIG’s, missiles and aircraft carriers in the new world of economic wars. He could annex Crimea but the economic war with the west took away all his pride. Former KGB agent might be feeling his training is insufficient when raising the interest rates to 17% could not stop Rubble from falling further.