World leaders need to move beyond oil to fix the mounting challenges faced by the global economy
Before we cheer about the “historic” oil deal, which entails coordinated production cuts to bolster prices, let's look at how this all came about.
The crisis for the oil industry started last month when Riyadh said it was flooding the market with additional supplies. That was an unusual move since major producers were trying to come up with ways to support the price and not crash it - more supply than demand meant a subdued price. Trump might be right in saying that he has saved a few thousand jobs in the US oil industry, but more than anything he has tried to rescue powerful shareholders and special interest groups.warnedLow oil prices over a longer duration can be a disaster for small oil-dependent economies such as Nigeria and Algeria, which rely heavily on hydrocarbons to finance their budgets.
The G20 is finally deliberating on a debt relief package for the poorest countries, but exact details have yet to be finalised while the situation is getting dire.
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