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Oil Prices Tumble to Fresh Lows

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Prices for WTI crude dropped below $50 in January 2015. Higher inventories weighed on oil prices and Saudi Arabia added to the pressure by cutting the price of crude sold in the U.S.

An unambiguous positive effect on the global economy of the 2014-2015 decline in oil prices

12/08/2014

The positive effect on the U.S. measured in percentage of GDP of savings from oil import bills- 0.5%. For Germany 0.8%, Japan 1.2%, China 0.8%, India 1.8%, South Korea 2.4%. A much needed boost for Japan, India, China, and the eurozone at a critical time of flagging economic growth.

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Oil exporting countries in West Africa such as Nigeria, Ghana and Angola lose oil revenues, oil importing countries in East Africa such as Tanzania, Kenya, Mozambique and South Africa benefit with lower oil import bills.

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