The #Price Of Oil is currently trading at $45 per barrel. The price of oil has been low for two and a half years now. Its price in mid-2014 was $110 a barrel. Low #Oil Prices have benefited some countries while others have been devastated.

Low trade deficits

Some countries which mostly import the commodity have recorded low trade deficits. Low trade deficits help maintain the currency value of a country. If a country begins to import less, it will start to save foreign currency such as the U.S dollar since most countries use the U.S dollar to buy the commodity.

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Foreign exchange savings also help improve currency reserves. Some countries have also experienced low inflation since gas prices constitute a huge portion of inflation calculations.

Happy consumers

Low global oil prices have translated to low costs of running a car. Gas prices in the United States will be the lowest they have ever been starting from the 4th of July. Consumers will pay an average of $2.21 per gallon; this will be the lowest price in 12 years according to GasBuddy. Businesses such as airlines and large manufacturers have also benefited from low oil and gas prices.

Several countries are in recession as a result of low oil prices

Nigeria is an example of a country which is in a downturn because of low oil prices. According to OPEC, in 2015, the countries petroleum sector made up 10-12 percent of the countries GDP.

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It also accounted for 51 percent of the countries federal government income and 90 percent of the countries export earnings. Overreliance on the countries petroleum sector has adversely affected the countries economy. Low oil prices have denied the country much needed foreign exchange reserves. In mid-2014 when oil prices were high, one US dollar was equivalent to 162 Nairas, one U.S dollar is now equal to 314 Nigerian Nairas. The county's GDP growth has been negative since the beginning of last year.

Venezuela has also been affected by low oil prices. Venezuela entered into recession in 2014 followed by inflation which was as high as 800 percent in December last year. The Telegraph in August last year reported that some of it citizens broke into one of the countries zoos and butchered a horse. In February this year, Fox News reported that Venezuelans are killing flamingos and anteaters because of hunger. Its zoo animals have also not been spared; the animals are dying of hunger according to one Reuters articles.

#Winners And Losers