Which countries will benefit from the collapse of world oil market
Under the conditions of negative influence of the coronavirus on world economy, nobody even expected that the oil market will grow, or will show stability. However, even most experts with pessimistic views did not expect such collapse which occurred some days ago.
Moderate reduction of prices in oil was anyway expected in connection with spread of COVID in the world - 19, but that Russia and Saudi Arabia, against this background, could not agree about prolongation of the OPEC +, repeatedly intensified it.
The Russian argument that the countries of OPEC+, reducing oil production, release the markets for the American tight oil, it appeared, against the coronavirus not so convincing. Now it is safe to say that it would be better to agree. As a result, yesterday's partners by the OPEC+ agreement have turned today "rigid" competitors of oil market, with all implying consequences. Anyway, apparently, the oil and gas countries in the future for uncertain time should «tighten belts».
Like in any economic situation not all will be at a loss, necessarily there will be those who will derive from the present position benefit. It is normal. Interrogated CNBC experts named who will win from sharp fall of oil prices.
In their opinion, in this matter India which imports more than 80% of energy resources becomes winner. Economists consider the current situation as a gift for the country as it can lower inflation and expenses on import. Cheap oil and gas only will further develop petroleum industry, power energy and transport. It will allow the Bank of India to lower the base rate and to give business cheaper credits. It is also noted that together with improvement of moods and low base India can show good growth of GDP. In the fourth quarter of 2019 it fell by 4,7 %.
However, from the fall of oil prices, seemingly, it appears that not only India, but also the USA which, generally, are the largest oil exporter, also benefits. The mass-media inform that Washington has decided to buy great volumes of the cheapened oil for reserve.
US President Donald Trump stated that he's directed the U.S. Department of Energy to purchase crude oil for the strategic petroleum reserve. “We're going to fill it (reserve) right up to the top,” - Trump said.
Now experts argue how well the American slate industry under the conditions of low oil prices is competitive and how strong is its safety factor. It is not inconceivable that it is not known even to Americans.
Nury AMANOV
