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For Once, Low Oil Prices May Be a Problem for World's Economy

  • The global economy relies more on oil-rich nations for growth
  • Azerbaijan, Nigeria and Suriname in talks for emergency loans
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What Is Fair Value for Oil Medium Term?

For the last 75 years, almost every economic crisis has been preceded by an oil price spike. The worry now is that low energy prices are pushing the global economy into a tailspin.

While the idea is counter-intuitive, it’s gaining traction because a growing share of the world’s consumers and investors are in the very places getting hammered by the rout in commodities prices. Apple Inc., for example, blamed weaker sales last quarter on lower economic growth in some oil-rich countries.