OPEC ruled – for a while. The recent oil price drop is a sign that OPEC does not move in unity. The low cost producers are doing well. The high cost producers are doing so poorly that they may be operating at a loss. The high cost producers also tend to have debt, which they paid for with oil revenues. The schism grows as, even within OPEC, the rich get richer, or at least the poor get poorer. The chance of default increases, and not just for countries. Frackers were financed with debt, and financial institutions traded those debts. Some of the elements of the housing and previous crises exist again, but this time for countries and drillers.
“The End Of OPEC As We Know It Is Here” – Brookings
Pretending Not To Panic 