Oil Prices and Politics: A Week in Review

Oil importers will feel the pain if oil prices reach $90 or $100 a barrel, as some analysts predict, due to the surprise OPEC+ production cut. Large oil importers will not be equally hit by higher oil prices in terms of state finances. The biggest losers will be Asia’s developed economies heavily dependent on oil imports, as well as emerging markets in south and Southeast Asia, which not only rely on imported energy but also have weak fiscal balances. The United States will see higher gasoline prices, but it will not be the biggest loser, at least financially, from the OPEC+ cuts.