All posts filed under: Siva Sooryaa

OPEC- End of an Era?

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By: Siva Soorya With OPEC transforming into a Saudi-Russian clique, who would emerge as the winner of crude oil prices for the next year? Last year on 30th November, the Organization of Petroleum Exporting Countries (OPEC) and a consortium of non-OPEC producers led by Russia agreed to extend oil output cuts until the end of 2018 to avoid an another supply glut. The decision has largely been in force until the meeting on June 26 when the OPEC+ group announced that the associated countries would maintain its collective target while lifting its country-specific limits on oil production. In response to criticism that the announcement was ‘vague’ in nature (as the official OPEC statement following the Friday meeting did not include a ceiling figure), Saudi Arabia, the de facto leader of the group confirmed that the move would lead to the increase of 1 million barrels per day. This has both immediate and long-term implications for the market. The immediate implication is that oil prices have fallen per barrel but now have risen back. “The trade tensions …

Hurting the Economy: What is the impact of Atlantic Hurricanes?

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By: Siva Sooryaa Continued ignorance of climate change and improper urban planning have amplified the impact of Atlantic hurricanes In the past month, the US economy lost 33,000 jobs and for the first time in seven years, the employment market is in red. The combined damages from the Atlantic hurricanes are estimated to be at least $400 billion. “Economists estimate that Harvey and Irma, which struck Texas and Florida, could cut as much as six-tenths of a percentage point from GDP growth in the third quarter” (Fortune). Thousands of families were not insured, stations were out of gas, evacuation efforts were greatly obstructed, and not to forget thousands of casualties suffered as well! Estimating the economic impact of hurricanes depend on various factors: location of the region, intensity of the hurricanes, factors impacting the economic output of the region and the intensity of the output. Impact estimates are divided into two categories: direct (such as physical destruction) and indirect (such as insurance claims). A university study has taken a different approach with  three major factors into …