I have been focussed on the impact on Russia of global oil prices, completely forgetting about the impact upon Venezuela.
The first part of this article brings it home. The United States has been gunning for them for some time. As Steve Pieczenik is wont to say, a good economic weapon is far more effective than the gun (I paraphrase).
The fallout of these prices is all over the place. Australia’s major oil and gas producer in Santos has negative value at current prices.
The other sleeper is all of those who are long on crude futures. Many of these will start to come home to roost big time soon, and whoever gets left holding the baby will probably not survive, including major banks. Remember the world’s governments post last year’s G20 are rapidly legislating to make what you think are your assets in their possession just another piece of capital for the banks, so it’ll just disappear before your eyes. Be warned.
But you can be sure George Soros will be making another billion or three being short. When you’re party to the planning, it’s hard to get it wrong.