The Worst Case If The Oil Slump Continues: “A Profit Recession”

Jon Alternative Media, Blogosphere, Economy, Energy

With hopes high, at least among corner offices of the majors, that this week’s OPEC meeting will somehow manage to slow down the biggest plunge in crude prices since Lehman, it will take much more than mere talk and hollow promises to offset the recent cartel-busting actions of Saudi Arabia. So in a worst case scenario where supply remains unchanged even as global energy demand continues to decline sharply due to the ongoing global slowdown…

… what is the worst case scenario that could happen – aside from the mass energy HY defaults discussed previously – should the price of a barrel of oil continue to correlate the change in 2014 global GDP estimated? Here are some thoughts from Deutsche Bank.

This post was published at Zero Hedge on 11/23/2014.