What does the world economy mean for the loss of oil in …

The impact the global economy could have on the sharp drop in international oil prices, which is around 50 billion barrels, despite recent projections of $ 100, said Bloomberg.

As stated in the report, oil importers such as India and South Africa will benefit. Oil-producing countries such as Russia and Saudi Arabia will be affected. Central banks, under the pressure of rising interest rates, will take a … carry forward in their moves in this direction.

In the end, adding to the badysis, much will depend on the evolution of global demand, influenced by the strengthening of the dollar and global trade disputes, but also the reaction of large oil producers.

Saudi Arabia is on one side in Russia, its ally in the management of oil production so as to be able to rely on the price of "black gold", and of the "low oil price". another side in the United States, where President Donald Trab calls Twitter to reduce oil prices. All eyes are now turning to the G20 summit this week to see if there will be a consensus on production between Saudi Arabia and the Russians and if it can be pursued at the next meeting of the member countries of the G20 OPEC. week

What does this mean for global growth?

By badyzing what the fall in world oil prices means, Bloomberg observes that, as winter approaches in the northern hemisphere, this reduction will provide relief to households and businesses in a downturn in the global economy. Economic Growth. There will also be oil importing countries with current account deficits, such as South Africa. China is also the largest importer of oil in the world and its economy is already experiencing a greater downturn in the context of a trade war with the United States, as well as internal challenges.

What does inflation mean?

In terms of inflation, lower oil prices translate into lower inflationary pressures and less pressure on central banks to raise interest rates.

What does this mean for emerging markets?

Bloomberg notes that, according to Capital Economics, any drop of $ 10 a barrel increases revenues by about $ 0.5 to $ 0.7. % of GDP for major emerging market oil importers. The same decrease will result in a 3 to 5 per cent loss of GDP in most Gulf economies and a slowdown of 1.5 to 2 per cent of GDP in the United Arab Emirates, Russia and Nigeria, on a yearly basis, according to badysts.

What does this mean for the United States?

With respect to the impact of these low prices on the United States, the agency notes that Trab has described this reduction as equivalent to tax cuts. However, the reduction of US dependence on imported oil due to the emergence of shale oil production will hurt the positive economic impact at the level of oil. ;industry.