Oil oversupply and its aftershocks

The world is getting flooded with Oil . With Iran coming in there will be more Oil . Thus as demand remains stagnant , supply increases and prices fall . In general low commodities is good for world growth . India being a net importer of Oil and will benefit from this fall in commodity prices .

However too low an Oil price may result in companies defaulting on debt payments . We live in a connected world . So sometimes too much of good turns bad . However for now the fear seems to be more in the mind than in reality .

At some point Oil producers will come together to cut productions before they bleed to death . However one thing is certain . Volatility is here to stay . In days to come we will see tsunamis of hope and despair rocking the markets .

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