We shouldn’t orient around oil prices, Farkhad Amirbekov says

To be protected from instability on the oil market, oil-exporting countries should get rid of oil prices as a macroeconomic index in the long-term, Farkhad Amirbekov, the head of the Baku Inter-Banking Exchange House BBVB, told Vestnik Kavkaza. Commenting on the record-breaking low oil prices, he says that even the formation of a new organization which could be an alternative to OPEC won’t help.

The expert points out that today there is no sphere which could substitute for oil revenues in the exporting countries. Farkhad Amirbekov urges governments to develop industries which would be based on the processing of their resources.

According to Bloomberg, the oil price falling could become worse, and it could plummet to $40 per barrel. The world could see a repetition of the events which led to Mexico’s default and destroyed the Soviet Union 30 years ago.

In such a situation oil revenues cannot protect Russia, which is the biggest oil producer, from the EU and American sanctions. Iran will have to cut subsidies. Oil producer,s which had become used to $100 per barrel, didn’t diversify their economies or did it too slowly. In case of a long period of low oil prices, they and the whole world will face political and social disaster.