Oil Prices Are Plunging. Here’s Who Wins and Who Loses.

As of recently oil prices have gone down by more than 9.9 percent,however; OPEC has decided that it would still not cut back on production. So basically among the slow growing global economy, coupled with the rise of oil production in the US has still not lead to a pull back in dominant oil producing countries. Countries from Saudi Arabia to Nigeria to Venezuela are gong to continue to keep pumping oil rather than cut back to raise the prices back up. The recent decline in oil prices has lead to oil prices in US to go under 70 dollars per barrel. Prices were almost a 100 dollars per barrel almost all of July, a significant decline s observed. 

The article goes into detail regarding the significant losers and winners of the recent decline in global oil prices.Firstly, the Global consumers are on the winning side of this. With oil prices at a new low this results in lower gasoline and jet fuel prices. Lower transportation costs will give retailers and manufactures less urgency to raise prices. The losers in this scenario would be the American oil producers and oil-producing state economies. Independent producers in the US cannot be analyzed due to them being privately owned, hence analysts rely on guess work. Another loser of today's scenario is Russia. Its economy is facing its sharpest challenges in years. Coupled with western sanctions imposed on Russia, has hampered it being a major energy producer. 

The winner and a Loser of today's oil price scenario are Central Bankers. The falling commodity prices have lead to low inflation rates and hence making their job harder. In Japan , the Euro zone, and the US the central banks have been trying to get inflation to rise and reach their annual 2% target. 

Source:

nytimes.com/2014/11/29/upshot/oil-prices-are-tumbling-heres-who-wins-and-who-loses.html?smid=tw-nytimes&_r=1&referrer=