{"id":1222,"date":"2014-11-07T11:36:18","date_gmt":"2014-11-07T16:36:18","guid":{"rendered":"http:\/\/olduvai.ca\/?p=1222"},"modified":"2014-11-07T11:36:18","modified_gmt":"2014-11-07T16:36:18","slug":"oil-price-collapse-ricochets-around-the-world-hits-us-drillers-the-ruble-and-russias-probability-of-default-wolf-street","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=1222","title":{"rendered":"Oil Price Collapse Ricochets Around the World, Hits US Drillers, the Ruble \u2026 and Russia\u2019s Probability of Default | Wolf Street"},"content":{"rendered":"<p><a href='http:\/\/wolfstreet.com\/2014\/11\/04\/oil-price-collapse-ricochets-around-the-world-hits-us-drillers-the-ruble-and-russias-probability-of-default\/'>Oil Price Collapse Ricochets Around the World, Hits US Drillers, the Ruble \u2026 and Russia\u2019s Probability of Default | Wolf Street<\/a>.<br \/>\nAs soon as word spread that Saudi Arabia\u2019s Aramco cut prices, rather than production, for its US customers \u2013 though it raised prices for Asian and European customers \u2013 the price of WTI swooned $2 a barrel on Monday, then continued to plunge on Tuesday, briefly dropping below $76 a barrel, before recovering a smidgen. Prices not seen since mid-2012.<\/p>\n<p>The Saudi price cut came on top of lagging economic growth and iffy demand in China and possibly a triple-dip recession in Europe, layered with what increasingly smells like an oil glut in the US where production from shale has been skyrocketing. If this price environment gets worse \u2013 and that seems to be the trend for the moment \u2013 the heat will spread to the US fracking industry.<\/p>\n<p>Shale oil drillers will bleed, and some of them will crumble under the pile of debt they have issued. Plenty of investors \u2013 including those with conservative-sounding bond funds that are larded with energy junk bonds, and those with equity funds that have picked up the slew of recent energy IPOs \u2013 will lose their shirts. And if it lasts long enough, some states where oil has become the new economic lifeblood will get hit too. But mostly, in the vast and diversified US economy, it will be a minor squiggle, counterbalanced in part by the benefits of lower energy prices for consumers and businesses.<br \/>\n&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil Price Collapse Ricochets Around the World, Hits US Drillers, the Ruble \u2026 and Russia\u2019s Probability of Default | Wolf Street. As soon as word spread that Saudi Arabia\u2019s Aramco cut prices, rather than production, for its US customers \u2013 though it raised prices for Asian and European customers \u2013 the price of WTI swooned [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[130,281,592,701,895],"class_list":["post-1222","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-china","tag-europe","tag-oil-price","tag-saudi-arabia","tag-wti"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1222"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1222\/revisions"}],"predecessor-version":[{"id":1223,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1222\/revisions\/1223"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}