The Global economy is goingtowards downwards spiral. Russia, China, Japan, EU, Brazil all are struggling
to revive their economy . Regarding Middle East countries they are worst hit
area. The real culprit is drastic fall of oil which dented many countries such
as EU, Whole Middle East, Venezuela, Russian economy. Most of the developed
countries gets big orders from Oil generating countries as well as other
product line. The fall in oil price prompted these countries to halt any
further upgrade and went into current account deficit.
In my point of view, the
competition between OPEC controlled countries attitude to keep the Shale gas
producer out of the business impacted the initiator dearly. OPEC countries also
refused to reduce the production quota in a fear of losing market share to non
OPEC oil producing countries. In my point of view, both OPEC and Non OPEC Oil
producing countries should sit together to create an strategy to stabilize the
Oil price around $65 to $70 per barrel so that these countries start making
some money and get some free cash flow which they can reinvest in their
economy. In the current scenario, it wont be far when Oil producing countries
with huge pile of cash burns most of their cash in order to maintain their
countries social security. The new order from these countries will reignite the
cascaded order process which will lead to new employment and revival of the
organization.
