Companies and People of west are dumping stock market, because of Low Oil prices. It seems that it can go well beyond $40 a barrel. Because demand for Oil is slowing down due to substitution for renewable energy, Coal, Shale Gas and natural Gas. Vehicles are better fuel efffient than a decade ago. The demand is sliding as well as supply is going up at a much faster rate. Iraq ,Syria and Libiya are pumping more oil due to war.
When price of Goods go down due to oil price then the final selling price will go down too. So the percentage of profit margin would be same but profits will be low. So there is a big correction on the way for stock market. Gold is going up due to stock traders opting to buy Gold instead of currency which is bound to fall due to weak economies in Asia and Euro.
Oil price is stablised then stock market would come back strong due to low oil price in the long run. Opec can no more control Oil price alone, It would be US, Russia and Opec controling world Oil Price. Saudi want a weak Iran in order rule the region. Shia powers of Iran, Iraq, Syria and Yemen will suffer much worst economic crises than rest of GCC. Russia will suffer much badly too. US Shale Gas producers will suffer too.
But People around the world will enjoy low energy cost for electricity and fuel at the pump. Budget defercit of Oil consuming countries is going to go into surplus. Wealth will shift from Rich countries to poor nations in long term.
In Sri Lanka who ever comes to government will find money full in coffers of the government. Sri Lanka will have a Budget Surplus in 2015.
When price of Goods go down due to oil price then the final selling price will go down too. So the percentage of profit margin would be same but profits will be low. So there is a big correction on the way for stock market. Gold is going up due to stock traders opting to buy Gold instead of currency which is bound to fall due to weak economies in Asia and Euro.
Oil price is stablised then stock market would come back strong due to low oil price in the long run. Opec can no more control Oil price alone, It would be US, Russia and Opec controling world Oil Price. Saudi want a weak Iran in order rule the region. Shia powers of Iran, Iraq, Syria and Yemen will suffer much worst economic crises than rest of GCC. Russia will suffer much badly too. US Shale Gas producers will suffer too.
But People around the world will enjoy low energy cost for electricity and fuel at the pump. Budget defercit of Oil consuming countries is going to go into surplus. Wealth will shift from Rich countries to poor nations in long term.
In Sri Lanka who ever comes to government will find money full in coffers of the government. Sri Lanka will have a Budget Surplus in 2015.
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