Oil Price Plunge Could Take a Bite from Arms Budgets
UNITED NATIONS, Jan 02 (IPS) – In a satirical piece titled ‘An Unserious Look at the Year Ahead’ in the Wall Street Journal last week, Hugo Rifkind predicts the price of a barrel of oil will fall so low that people across the world would start buying oil for the barrel – and throw the oil out.
The journalistic spoof about the oil market may be an improbable scenario, but in reality the sharp decline in prices has generated both good and bad news – mostly bad.3
In the United States, the fall in oil prices is being viewed as an unexpected – but welcome – stimulus to the country’s recession-struck economy.
As one U.S. newspaper headline read: ‘For (U.S. President Barack) Obama, Low Oil Prices Bring Hope’
The London Economist points out that a 40-dollar price cut would shift about 1.3 trillions dollars from oil producers to consumers.
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