Will Low Oil/Gas Prices Lead to ‘Social Unrest’? $25/Bbl Coming?!

The low price of oil (and gas) is blamed for a lot of things. You can add one more to the list: social unrest. You might think oil and gas prices being obscenely high would lead to “social unrest,” but according to analysts at RBC Capital Markets, it’s the opposite. The theory goes like this…In big oil countries like the U.S., Russia or even “wealthier” Middle Eastern countries like Saudi Arabia, when the price of oil crashes, they have the national resources to ride out the price collapse (i.e. keep welfare programs going)–until the price rebounds. But not all oil exporting countries are so fortunate. What if the price of oil hits the $25 per barrel range next year, as is predicted by RBC Capital Markets? According to their analysts, there are some (socialist) countries that will stop paying for public programs, and that will lead to “social unrest” as those addicted to the public teat get weened (think Greece). Among those countries are what RBC calls “the Fragile Five”–countries where ISIS is believed to be active. Which countries are they?…

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