Oil crash will trigger largest capital movement in human history

The fall in oil prices has a positive effect on its demand and will lead to the fact that $ 3 trillion. dollars per year will flow from oil producers to global consumers, providing one of the largest transfers of wealth in human history, experts say.

If prices average around $ 40 over the next five years, which is close to the current curve, demand will rise to 1.5 million barrels per day. Finally, at a price of $ 20, oil demand will rise to 1.7 million barrels per day. Meanwhile, emerging markets, which have recently seen a drop in economic growth, see huge growth potential in terms of vehicle supply and consumption.

Take China, for example, where declining oil prices are fueling a boom in SUV sales: “In addition, low oil prices are encouraging Chinese consumers to buy larger cars. three months, while total passenger car sales grew less vigorously - by 22 percent. "

And it's not just in emerging markets where the impact of cheap gasoline is being considered. After several years of stagnation, US auto sales increased in 2015. Combining these trends with the decline in, say, Saudi Arabia's foreign exchange reserves, or the price of any oil company stock, you can see the dramatic shifts in wealth that are now taking place in the world.