Winners and Losers in the New Age of Cheap Oil

Goldman Sachs forecasts that weak oil prices will persist, with Brent averaging $85 per barrel next year. This aligns with current prices, which have dropped from $115 in June. Increased production from the US, OPEC, Libya, and Iraq, coupled with reduced demand from Asia and Europe, has led to this decline. OPEC has not reduced output to stabilize prices. Economically, Russia faces challenges due to its reliance on hydrocarbons, while emerging markets and consumers benefit from lower prices. Citigroup estimates a $1.1 trillion annual boost to the global economy, with US drivers enjoying cheaper fuel.

What average price per barrel does Goldman Sachs predict for Brent oil next year?

• $95

• $105

• $85

• $75

Which factor has contributed to the increase in oil production in the US?

• OPEC's new policies

• Increased demand from Europe

• The shale revolution

• Technological advancements in Libya

How has OPEC responded to the current oil market situation?

• By increasing production

• By collaborating with Russia

• By maintaining current production levels

• By reducing production

Which country is negatively impacted by the current oil prices due to its dependency on hydrocarbons?

• United States

• Russia

• Saudi Arabia

• China

What is the estimated annual economic stimulus from oil prices at $85 per barrel?

• $2 trillion

• $1.1 trillion

• $500 billion

• $3 trillion