Who Wins, Who Loses in Oil Price Drop
Bloomberg has obligingly provided us with a world map showing who are the winners, the losers and the big losers in the collapse of the oil price. The winners are indicated in green, the mild losers ($60 billion or less) are depicted in orange and the big losers (more than $60 billion) are portrayed in red. Asia and Europe have actually done better than the United States, even though it is our oil that has driven the price drop. This is because they import almost all their oil. The biggest losers are the Middle East and Russia, the producing countries. Canada has also taken a hit, getting stuck with a lot of unsalable heavy crude oil. Of course this only represents about six months’ marketing. Things could turn around fairly quickly for the producing countries if supplies from the U.S. taper off. But as things look now, it’s not going to happen soon.