Analysis  |  9 July 2012

The political perils of low oil prices

By Matthew Hulbert

Oil prices have rapidly dropped in recent months, and some analysts predict a further (steep) decline. This might seem like good news to consumer states, but there is a catch. Whereas producer states could balance their budgets at $30 a barrel less than ten years ago, they now need $100 a barrel to make ends meet. If oil prices continue to correct, expect instability to hit producer states across the board. That might (ironically) help to set a price floor and push prices up again, but it's not a development that consumer countries should be happy about. Keeping oil prices at $100/b remains a better plan than seeing producer states collapse.

Log in to access this page.

To log in you need to be registered. Register now for your Premium Membership: FREE trial!

 

Premium Membership

REGISTER NOW  AND ENJOY FULL ADVANTAGE OF YOUR FREE TRIAL FOR 30 DAYS


EUROPEAN ENERGY REVIEW
PREMIUM MEMBERSHIP INCLUDES:

  • New and improved European Energy Review Journal
    Weekly
  • Special Reports
    4 editions per year
  • Full membership access to website EuropeanEnergyReview.eu
    Improved, with new articles daily and an archive consisting of thousands of reports, analyses and insights, diverse dossiers, blogs, agenda and more…
  • EER Yearbook 2014
  • 50% discount on EER Special Reports
  • Huge discounts for congresses, seminars and meetings
  • Free entry to new webinars

EXTRA: If you register as a Premium Member, you will also receive the Special Report 'Transition: Core of the Century’ worth 95 euro for FREE.

Search files
File:
Theme:
Country:
Author:
From:
To:
Text:
Readers' contributions
Recently published
Social media
Linked in banner
Follow us on Twitter
Follow us on Facebook
Published By
Elektor
European Energy Review receives Award for Excellence in Written Journalism
Files Market Dynamics and Trade The political perils of low oil prices
Log in | Register | Contact
Register now