The recent drop in oil prices lends itself to fascinating analysis. OPEC members are finding it difficult to agree on a strategy to increase price and are more inclined to ‘cheat’ and sell more for less to protect revenues and market share. High expenditure projects in Venezuela and some Middle Eastern countries have placed greater emphasis on generating revenues to balance the books and, with the falling price of oil, they are perilously close to fiscal deficits. As an aside one of the articles below questions the motives for such spending and thus begs the question as to what may occur when such spending ceases?
The increase in US shale oil appears to exacerbate the situation further as supply is outstripping demand and on the face of it would signal the beginning of the end of OPEC. Combined with the latest UN backed report stating that the use of fossil fuels should be fazed out by the end of this century if irreversible damage to the planet is to be avoided, countries like Kuwait need to restructure their economies sooner rather than later.
Great opportunity for development of chains of analysis and evaluation with diagrams.