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Oil market showdown: can Russia outlast the Saudis? : Comments
By Dalan McEndree, published 21/10/2015Yet IMF October 2015 and April 2015 World Economic Outlook projections for the Russian and Saudi economies a paint pessimistic portrait.
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- why aren't we paying under $1 per litre for fuel?
- what happens when all the $50 per barrel oil is gone?
The flipside to low oil prices is that heavy importers like Australia are spared energy price inflation. An oil price of say $80 would not only help exporters but creates an incentive to find low carbon alternatives. Still waiting to see the roads crowded with electric cars.
If the oil price stays at $50 and costlier fields (offshore, fracking, tar sands) cannot be developed we might suddenly find ourselves short of fuel for even a no-growth economy. Alternatively a painful correction might ensue, hopefully not to the ~$150 price of 2008. Don't buy an SUV just yet.