That’s good unrest I don’t see the downside. But I suppose there are those that do. Who doesn’t love high gas prices!!!sarc/on
It’s not so much that the prices are going down. It’s the velocity of the drop.
This will impact the new oil fields that have mostly driven our “recovery” in the ND through TX corridor.
If Veneuzuala falls that might cause some unrest and defaults in South America that might bother us a little.
The big dog that is getting hurt is Russia. How could they retaliate? They could dump treasuries or other assets. They could retaliate against Europe. Or, the financial crisis in Russia could lead to a more physical reaction like picking a fight with someone.
The falling oil prices are great for you and me. I drive a lot. But that might be short lived if we have fewer places to drive.
I am not one of those, “it’s raining cats and dogs” guys. It’s just that everything is connected and the economic relationships are all complicated. It wouldn’t take much pulling on a string to unravel the entire sweater.
Significant unrest in the countries, will likely result in reductions of oil production. Which lowers global supply, then raises prices and the roller-coaster ride continues.
The bad part for us would being dragged into an armed conflict because one of those countries tried to take some more production from a neighbor, like August 2nd, 1990.
I’m not suggesting we should ask the feds to do anything due to low oil prices, not at all.
I am only saying, don’t be surprised if Venezuela, maybe Iran crack. I’m hoping the people, cut off from their subsidizes, rise up and overthrow. But Venezuela may try gaining some Columbia production to offset their loss in income.