World oil prices are continuing its slide from a record high of over $130 a barrel of Brent crude in 2008 to a $60 a barrel in early December 2014. It was less than $25 a barrel in 1987. Major economies that are feeling the pinch include oil exporting countries such as Russia, Saudi Arabia, and Venezuela and the non-OPEC United States that is experiencing an oil boom lately. Falling prices spell bad news for many oil and gas producing countries. Oil and gas accounts for more than 70 percent of Russia’s export income. Coupled with the falling value of Ruble and Western sanctions, Russian economy expects to shrink by 0.7 percent in 2015. As one of the large world oil exporter, Venezuela is on the brink of recession. The world’s largest oil exporter and the most influential OPEC member Saudi Arabia resisting any production cuts. Thanks to ever increasing fracking technology and gas and oil extraction from shale, the US is experiencing a glut of oil pushing prices down.
Many blame the oil boom in the US due to advances in fracking and horizontal drilling and slowing demand from world countries for the falling oil prices. But it is a win-win for the consumer giving additional money for other purposes.