Headline Feb 19, 2015/ ''' OIL PRICES : A MILESTONE OF HISTORY '''

''' OIL PRICES : 

A MILESTONE OF HISTORY '''

OIL IS THE WORLD'S MOST VALUABLE COMMODITY, and ripples from the price crash reach everywhere.

But How Long Will It Last? How Long Will It Go?

Yes, this can help create new jobs, but also threaten existing ones, spur innovation or slow it, and lift entire nations while weakening others.

The World Students Society Computers-Internet-Wireless explores the ramifications for you and the world.

U.S.

Cheaper oil means consumers will have more cash, though domestic producers will be hurt.

CHINA

Every $1 drop in oil translates into $2.1 billion in savings for China, which could use the opportunity to phase out cheaper, dirtier fuels.

INDIA

Cheaper prices will mitigate the  $10.5 billion the government spends on petroleum subsidies each year.

SAUDI ARABIA

The wealthy nation will lose on low-prices, but its competitors will suffer even more.

PAKISTAN

Of all things, Pakistan ran out of ''operational oil''. So, it could never truly cash in. With the economy highly cartelised  most  benefits remained optical. But even that helped,  -even in an environment of competing economic demands. The total benefits so far to Pakistan would exceed $2 billion. 

IRAQ

The country's battle against the insurgency of  the ISIS is costly and highly dependent on oil revenues.

IRAN

Oil prices may pressure Iran to reach a deal over its nuclear program in order to ease debilitating sanctions.

RUSSIA

The government predicts its economy will fall into recession and tumbling oil prices and Western sanctions   

But to enumerate one relevant example, how the economic forces play out, here is one real case  of an oil producing country: 

VENEZUELA'S economy is in tatters. Annual inflation is running at more than 60%.

On the black market, the local currency has lost 65% of its value against the U.S. dollar in the past year.

Fallen reserves have fallen to around 30% in the past two years. Shortages, due in large part to importers struggle to obtain hard currency, have led to ubiquitous lines for everyday goods.

''This government is filth,'' says Antonia Rodriguez, a 60-year old lab assistant, waiting in line for milk outside a Carcass supermarket on a recent Sunday morning: 

''There's no food! If Chavez were alive, this wouldn't be happening.'' 

Cheap oil puts the president, who blames the problem on an ''economic war'' being waged against Venezuela by the West, in a tough position. To end a $12 billion-a-year subsidy on gas at the pump:

Which allows Venezuelans to fill up their cars for just a few cents. 

Economically, this would be easier to do now with low oil prices, though politically, it could spark major riots -just as it did when a similar move was tried in 1989.

Venezuela, has served as Cuba's chief patron, sending  the communist island country almost 100,000 barrels of oil per day and between $5 billion and $15 billion per year in aid. 

But there's no way that Maduro can afford to remain so generous with oil below $50 a barrel   -something the Cuban President Raul Castro surely knows

In a recent cartoon by Venezuelan satirist EDO, President Maduro is shown as a seating snake charmer trying to  persuade a barrel of oil to rise. So far the magic hasn't worked.

''It is not in the interest of OPEC producers to cut their production, whatever the price is,'' Saudi Oil Minister Ali al-Naimi said at the end of December.

As far as $100-a-barrel  -what seemed like the new normal as recently as a year ago  -al Naimi said  ''we may not''  see it again 

Those were startling words.

The International Energy Agency called it a ''milestone in the history of oil,''

With respectful dedication to the Students, Professors and Teachers of Venezuela. See Ya all on !WOW!  -the World Students Society Computers-Internet-Wireless:

''' The World Outlook '''

'''Good Night and God Bless

SAM Daily Times - the Voice of the Voiceless