OEF Rapid Review Articles
The February 2016 OPEC Monthly Oil Market Report indicates the following, on page 17, with regard to “Recent Interactions Between the Oil Market and the Global Economy”:
– It seems that the overall negative effect from the sharp decline in oil prices since mid-2014 has outweighed benefits in the short-term and there seems to be a ‘contagious’ effect taking place across many aspects of the global economy.
– The considerable decline in oil prices is also affecting a wide range of important sectors, including manufacturing or agriculture.
– Most recently, additional contagious effects from low oil prices have become obvious. Already fragile economies have to now deal with severe financial strain.
– The book value of oil-related investments has also been eroded over the course of the past 18 months.
– In addition, the exposure of banks to the oil industry, in the form of loans granted to small- and medium-sized oil companies, and the relatively large share of junk bonds from shale producers has added to concerns in the financial industry.
Organization of the Petroleum Exporting Countries
LINK TO THE SOURCE ARTICLE:
OPEC oil market report: Negative effects of oil price drop has outweighed benefits
LINK TO THE SOURCE ARTICLE:
OPEC oil market report: Negative effects of oil price drop has outweighed benefits