According to Natural News, the collapse in the price of crude oil is having some negative effects, and they will begin to manifest themselves more and more in the coming months in the form of rising social tension and unrest, say experts, especially in countries where oil keeps their economies afloat.
In addition to growing supplies, a stronger U.S. dollar and lower demand — consumers in the U.S., in particular, have responded to chronically high gas prices by purchasing more efficient vehicles — is also driving down prices. None of these factors are expected to change soon.
Since June, oil prices have lost about half their value, falling from about $100 a barrel to $55 a barrel as of this writing. They are expected to go lower, with some industry analysts predicting a floor of $40 a barrel.
There is already a plot afoot to essentially rally oil prices, and it is being led by the leader of OPEC: Saudi Arabia, a nation that relies almost exclusively on oil revenues to fund its monarchy and generous government entitlement programs (programs that keep the Saudi people obedient to the king).
Oil-dependent economies will be hit worst — and first.
As reported by news website CentNews:
At the OPEC meeting on November 27, kingpin Saudi Arabia and other Gulf monarchies opposed a cut to the cartel’s daily output ceiling of 30 million barrels.
Analysts say they want lower prices, even if it slashes incomes, to counter the rise of US shale oil — which is more expensive to produce and eats into OPEC’s market share.
But other countries dependent on oil revenues — Venezuela, Nigeria, Iran, Iraq and Russia — want prices to rise sooner rather than later, “so they can balance their books and salvage their teetering economies,” CentNews reported.
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Just-in-time food deliveries are completely dependent on all these things functioning smoothly in society:
1) FINANCIAL TRANSACTIONS: Financial transactions with banks are necessary to process payments for received goods and transportation fees. If the transactions can’t go through, deliveries can’t be made.
2) FUEL SUPPLIES: If fuel isn’t readily available, the trucks don’t roll. And fuel supplies depend on the functioning of oil refineries which, of course, run on electricity from the power grid.
3) POWER GRID: Without the power grid online and functioning, trucking companies can’t function because they’re all run by computer. Stores also can’t stay open to receive goods because they can’t log in the received inventory via computer.
4) SOCIAL STABILITY: Trucks can’t deliver groceries to stores that are on fire or stranded in the middle of Riotsville, USA. No trucker will risk his life just to deliver another thousand boxes of Cheese Nips for 48 cents a mile.
All it takes is any one of these crashing down to result in grocery store shelves being stripped bare in mere hours. You can also see that happening from sudden spikes in demand such as the pre-hurricane store rushes and even the post-Fukushima store shelf wipeouts we witnessed in Japan.
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