A drop in oil below $40 and a continuous drop into the $30s is going be a major, major, major, major problem for the economies which rely on oil as their bread and butter, those countries that rely on oil are going to see huge economic problems moving forward....the drop in commodities is just a sign of whats going to come, the slow down is here, the markets here in the US have not shown signs of it yet but get ready for a major, major correction and probably another crisis that the fed has no idea is coming.
OUCH!!!!! that is a huge drop, think it breaks $40 overnight, then who knows where the bottom is. I remember people yelling about peak oil and $150-$200 a barrel, just goes to show you prices always come down.... Oil hits near 6 1/2-year low after stockpile build OIL40.52 -2.10-4.93%
Already. The International Monetary Fund (IMF) says the steep fall in oil prices is likely to dampen growth in Saudi Arabia.Real GDP growth is projected to slow to 2.8 percent this year and then further to 2.4 percent in 2016 as government spending begins to adjust to the lower oil price environment the IMF said adding that it however expects the medium-term growth to be around 3 percent.
"It will end when you've had an announcement of five or six bankruptcies. It will end when mergers and acquisitions step in and take over," the founder and editor of The Gartman Letter said on CNBC's The only people who are going to survive this are the people who used the WTI and the Brent oil futures to hedge production two and three and four years forward," said Gartman.