Economic Events of 2014 That Shook the World

By Sputnik | Infowars

Image credit: Katrina.Tuliao

As the whole world enters the new year of 2015, so does the economy, which has seen quite a few game changers in 2014 and, in some aspects, saw the transformation of decades-long trends.

To have a better understanding of the current economic situation and possible future developments, here is a look at some of the most notable events in the world economy that triggered a shift in macroeconomics and geopolitics.

Oil Prices: From $110 to $60 Per Barrel

The major issue in 2014 world economics was the sharp decrease of oil prices, the result of many factors. Brent levels began the year at levels above $100 per barrel, peaking at $110 and higher in June. It is now selling at around $60 per barrel.

Among the main reasons for the latest oil price decrease was a late November announcement by the Organization of Petroleum Exporting Countries (OPEC) to keep oil production volumes at current levels.

Many countries reacted calmly to the decision, with Iraq’s oil minister Adel Abdul-Mehdi stating that “economic realities are economic realities,” adding that the country should now “see those realities” and adjust itself “accordingly.”

OPEC’s move was not welcomed by many oil producing countries, including some OPEC member-countries, and has severely impacted many of the world’s oil exporters with Russia among the main victims.

Russia’s Economy: Heading Toward Recession

The Russian economy suffered not only from the oil price decrease, but also from sanctions imposed by several Western countries, including the United States and the European Union, over Moscow’s alleged involvement in Ukrainian affairs.

Despite Russia’s steadfast denial of the allegations, many of its prominent citizens, mostly civil servants, have been banned from travelling to the countries imposing the sanctions, and their assets and property in those countries has been frozen. Other restrictions targeted the country’s banking, energy and defense sectors. Among the prohibitions is the issuing of new loans to banks, the exclusion of oil and defense companies from western financing and the banning of dual-use goods and sensitive technologies to Russia.

Read more: http://redpillreports.com/economic-news/world-economic-events-of-2014-that-shook-the-world/