Mike Issa's article "OPECalypse Now and the World Economy" was published in the American Bankruptcy Institute Journal. Find an excerpt below.
Since 2014, the price of crude oil has suffered a major drop of approximately 60 percent from its peak of $111.80 and currently hovers around $60. This has created a financial crisis for most Organization of the Petroleum Exporting Countries (OPEC) members and other oil-producing countries. The OPEC struggle can potentially impact the world economy.
All but two OPEC member nations are on a collision course with financial ruin. Budget deficits as a percentage of GDP are generally double-digit, levels that are clearly unsustainable. Cash and investment reserves are being depleted, and sovereign debt is being incurred to delay the day of reckoning. The total sovereign debt of OPEC is approaching the level of subprime mortgage debt that rocked the world on its economic axis in 2008.
For the full article, please click here.