The low down: When it comes to oil, the question becomes how low can prices go. With Iran back as a full player in world oil markets, the previously unthinkable—sub-$20-a-barrel crude—is looking more possible. As USA Today reports, Iran’s oil ministers say they intend to boost their oil production and ship 500,000 barrels a day initially, now that sanctions have been lifted in light of nuclear inspections deal, the Islamic Republic News Agency reported. Iran’s goal is 2 million barrels a day. Those levels alone are big enough to further depress the price of oil, especially because Saudi Arabia has refused to cut its production levels. The result could lead to oil prices in the mid-$20s a barrel, and with occasional bouts of panic selling, briefly dip into the teens, says Tom Kloza, chief global analyst for the Oil Price Information Service. USA Today has the full story.
Sitting on top of the world: The richest 1% is now wealthier than the rest of humanity combined, according to Oxfam, which called on governments to intensify efforts to reduce such inequality. In a report published on the eve of today’s World Economic Forum’s annual meeting in Davos, Switzerland, the anti-poverty charity cited data from Credit Suisse Group AG in declaring the most affluent controlled most of the world’s wealth in 2015. That’s a year earlier than it had anticipated. Oxfam also calculated that 62 individuals had the same wealth as 3.5 billion people, the bottom half of the global population, compared with 388 individuals five years earlier. The wealth of the most affluent rose 44% since 2010 to $1.76 trillion, while the wealth of the bottom half fell 41% or just over $1 trillion. Oxfam says governments should take steps to reduce the polarization, estimating tax havens help the rich to hide $7.6 trillion. Bloomberg has the full story.
Panic zone: Last week’s harrowing plunge in U.S. stocks—fueled by economic fears about China and plummeting oil prices—has left investors anxious and alarmed. Some are wondering if it signaled an approaching recession in the United States. The answer, most analysts tell The Associated Press, is no. The American economy is expected to prove resilient and nimble enough to avoid serious damage, at least anytime soon. For all the economy’s challenges, the job market is strong, home sales are solid and cheaper gasoline has allowed consumers to spend more on cars, restaurants and online shopping. The companies that make up major stock indexes are far more vulnerable than the economy itself is to distress abroad: Companies in the Standard & Poor’s 500 index derived 48% of their revenue from abroad in 2014, up from 43% in 2003. By contrast, exports account for only about 13% of the nation’s gross domestic product—the broadest gauge of economic output. Read the full story.
