Re:China Stock Market Drops 8.5%
by roel_v on Monday August 24, 2015 @09:00AM
(#10109408)
- Norway: lots of natural resources, low population, spends only part of oil money (in fact, Norway makes more money per year from the oil fund (i.e., money saved from past oil sales ) than it does from actual oil sales.
- Saudi Arabia: lots of headway to cut spending; standard of living is already very high, with huge reserves to soften the impact of short-term price volatility.
- US: has imported oil for decades until there were enough combined geopolitical and economic incentives to start using its own; exports < 10% of all exports.
- Russia: > 50% of exports are oil; heavily cash-strapped already, so all decreases in oil revenues are directly painful; few options to diversify; too small to be a market maker. Oil money is a direct driver of improving economic circumstances, which in turn provide for much of the countries relative stability.
- Saudi Arabia: lots of headway to cut spending; standard of living is already very high, with huge reserves to soften the impact of short-term price volatility.
- US: has imported oil for decades until there were enough combined geopolitical and economic incentives to start using its own; exports < 10% of all exports.
- Russia: > 50% of exports are oil; heavily cash-strapped already, so all decreases in oil revenues are directly painful; few options to diversify; too small to be a market maker. Oil money is a direct driver of improving economic circumstances, which in turn provide for much of the countries relative stability.