Premium #202 – How Oil Production Costs Impact Aviation

As oil prices slump, there are a number of sources that offer explanations of what might happen.  The IMF has a good one, as does Chase.

Generally there is a concern that major oil source nations in the Middle East need expensive oil to ensure their budgets stay balanced.  Failure to do this will eventually lead to a financial crisis, and as we have seen, all crises in the Middle East cast long shadows.