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Opec's latest move big shock for global system

If oil cartel maintains new stance of not reducing output, consequences for the global economic and political systems will be profound.

The most obvious reason behind Opec's decision is to cut the ground from under the US shale industry, which would not be able to compete with the low-cost producers in the Persian Gulf.

IN the 1970s, the oil-producing and exporting countries of the Middle East delivered a shock to the global economic system that had many unexpected consequences. The quadrupling of the price of oil hastened the process that came to be called "globalisation". It deeply affected the structure of...

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