Falling oil prices could result in a saving of up to € 63 ($80bn £50bn,) for the European Union, delivering a welcome boon to the floundering economic bloc.
Research from Reuters shows that oil prices have fallen to below $85 per barrel for the first time
since June 2010. The figures show that the EU forked out some $500bn on
oil, natural gas and thermal coal imports in 2013 and that around 75%
of that figure was spent on oil.
If the low prices hold, it could result in a saving of $25bn this year and $80bn in 2015, compared to 2013's outgoings.
While the EU – which produces little of its own fuel
– would benefit from the falling prices, the likes of Russia, Iran and
Saudi Arabia are set to suffer as a result.
The Economist reports that the oil price breakeven level is $90 per barrel for Libya, Russia and Saudi Arabia – three economies which are heavily reliant on oil exports.
Russia is already in line to suffer from worsening
relations with the EU, which imports a huge amount of its crude. Even
after negotiating large energy deals with China this year, a fall in price of such scale could have a dramatic effect on an industry which provides 45% of its GDP.
Read more: Falling Oil Prices Could Add $80bn to EU Economy
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