{"id":16897,"date":"2016-01-25T12:32:23","date_gmt":"2016-01-25T17:32:23","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16897"},"modified":"2016-01-25T12:32:23","modified_gmt":"2016-01-25T17:32:23","slug":"oil-crash-only-the-tip-of-the-iceberg","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16897","title":{"rendered":"Oil Crash Only The Tip Of The Iceberg"},"content":{"rendered":"

Oil Crash Only The Tip Of The Iceberg<\/a><\/h3>\n
We may be enjoying amazingly low prices at the gas pump, but as oil prices continueing to slide we must also remember the catastrophic events that have followed almost every drastic oil price slump in the past.<\/div>\n
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At this point, it\u2019s not likely a question of \u2018if\u2019, or even \u2018when\u2019, the next financial crisis will hit. It\u2019s more likely just a question of how big it will be.<\/p>\n

In the early \u201880s, OPEC members\u2014Saudi Arabia aside\u2014were producing oil above the agreed upon caps. By 1986, Saudi Arabia, frustrated with all the cheating, gave up on limiting its own production. It flooded the oil market and sparked a 55% freefall in prices. Not so long after, the stock market plummeted 22.6% in a single day\u2014the single biggest loss in the market\u2019s history.<\/p>\n

Related:\u00a0Analysts See 2016 Oil Price Rise, While Traders Bet On Fall<\/strong><\/a><\/p>\n

And then there was the 2008 housing crash, which came after a pattern of reckless lending and inflated housing prices. Housing prices collapsed, leaving the banks holding unrecoverable debts. Gradually, the crisis expanded into The Great Recession. Again, oil played a role here, having dropped more than $40 per barrel in less than six months in early 2008.<\/p>\n

The common denominator here has always been falling oil prices.<\/p>\n

And so here we are again\u2014on the brink of another disaster in the wake of plummeting oil prices, rampant OPEC production, and skittish investors.<\/p>\n

The\u00a0Dallas Fed<\/a>\u00a0estimates that the actual cost of the 2008 recession was somewhere near $14 trillion. Ominously, today\u2019s oil prices are well below the 2008\/2009 lows, now down more than 75% from their highs just 18 months back.<\/p>\n

Related:\u00a0Why The Oil Price Crash Is Killing The NHL<\/strong><\/a><\/p>\n

In January 2015,\u00a0Goldman Sachs<\/a>\u00a0said that at $70\/bbl, around $2 trillion of future investments all over the world were at risk. Today\u2019s prices are hovering between $28 and $30 per barrel.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Oil Crash Only The Tip Of The Iceberg We may be enjoying amazingly low prices at the gas pump, but as oil prices continueing to slide we must also remember the catastrophic events that have followed almost every drastic oil price slump in the past. At this point, it\u2019s not likely a question of \u2018if\u2019, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","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":[4333,11945,588,1775,595,5332,600,701],"class_list":["post-16897","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-crude","tag-jen-alic","tag-oil","tag-oil-price-collapse","tag-oil-production","tag-oilprice-com","tag-opec","tag-saudi-arabia"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16897","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=16897"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16897\/revisions"}],"predecessor-version":[{"id":16898,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16897\/revisions\/16898"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}