With the fluctuating prices of crude oil in the market, it is only befitting to think if the black oil has been any semblance of a curse or blessing on black nations. The current downfall in the price of crude oil has become the talk of the world in the past few weeks.
However, it is difficult for the common person to understand how the fall in crude oil prices stands to affect him. There is also the need to be prepared for the negatives that is about to become the norm in the coming months.
This post addresses the economic impact of the dwindling oil prices as well as how to brace up for the eventualities that will definitely arise in no time. Let us get down to the impacts on individuals. These impacts include but are not limited to the following:
A Fall in Price of Crude Oil Products
The prices of crude oil driven products are about to drop to its lowest point in years. If you are in the business of hoarding crude oil products like petrol and so on, now might not be the best time for your business. Because the fall in crude oils’ price and the inability to get buyers for the already cheap product would result in the excess availability of the product.
For majority of individuals working with oil exporters or oil firms, if the prices do not come up anytime soon, there might be the need to downsize. Considering that these firms run on debt, the low price of crude oil may require that they find it difficult to service their loan and still keep staff. There is a need for those working in the oil sector at this time to prepare for possible downsizing.
There may be need for countries that depend heavily on crude oil to fund their economy to have to devalue their currency. What does this mean for the common man? In simple terms, this means that on the international market your currency experiences a reduction in value. In other words, you would need to pay more than usual for anything that is bought from outside your country. Let your imagination run wild on the possible outcome of this.
Importers and Exporters
For the importer, this might not really be a good time for business. Considering that, the value of their currency has depleted considerably. Let’s not begin to paint the picture for the cause of the deep thinking that plenty importers are currently doing.
Exporters might probably the smiling right now, with the devaluation that is about to happen, holding stable currencies like dollars or pounds might just be what you need to have the much needed peace that you desire.
This might be the time for local manufacturers. Local manufacturers complain about how people prefer to patronize foreign products and not locally made ones. However, this might be the time for local manufacturers to cash out if they know what exactly they are doing. Because of the possibility of dire financial times we are about to begin, it is only logical that people begin to actively hunt for cheaper substitute to their favorite products. That is where the local manufacturers come in and steal the show from unsuspecting foreign competitors.
Yes, the cost of production might be higher especially for those that import raw materials. However, it might also be the time to look inward to make the best use of the difficult time that is about to hit.
In as much as there is little or nothing that can be done to bring to the barest minimum the problems that might arise from this situation, it is important to note that it is better to come up with a solution on how to survive the harsh economic situation that is about to rock the globe. Do not sit and fold you arms waiting for a hail Mary. Rather, take the bulls by the horns and put on the armor of protection. Do not say you were not warned or you did not understand the effect of the falling oil prices.
Nevertheless, has the discovery of crude oil in Nigeria been a blessing or a curse on nations of the world?
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