Oil Prices Could ‘Crater’ in 2014
It what sounds like a dream scenario for U.S. consumers, Ian Bremmer, president of Eurasia Group, says oil prices could “crater” in 2014 and OPEC could “fall apart.” But a serious decline in energy prices could lead to a nightmare for U.S. policymakers as “expanding unrest” in the Middle East is one of Bremmer’s ‘top risks’ of 2014.
While the Middle East becoming more violent over expanding unrest associated with lower crude revenues and lower margins is certainly a concern, it is challenging to make an argument that the wealth and prosperity created by crude reaching $140/bbl created any additional love for their American customers. It might be easier to argue that excess profits led to large dollars being funneled to support additional unrest.
Courtesy of Aaron Task, Daily Ticker