Is Oil Low Price Going to Sustain the Economic Recovery?
... speculation. Then, as partially anticipated, there's the financial risk. Many producers have incurred in heavy debts to finance their development, confiding in their revenues from oil sales to repay them and in the favorable interest rates, Venezuela being a prime example. Then even if not so financially exposed, some recessive effects are doomed to happen anyway. For example, according to the IMF, in 2015 Russia will supposedly lose a chunk of its GDP amounting to 3%. That would explain why the reduced oil price is not sufficient to shake the economy at global level and induce growth again, barring some exceptions, most notably the U.S.A. “The ...
17.02.2015
