This Era of Low-Cost Oil Is Different

This Era of Low-Cost Oil Is Different

Many analysts and policy makers have a natural tendency to ‘look through’ the latest drop in oil prices — that is, to treat the impact as transient rather than as signaling long-term changes. I suspect that view would be a mistake this time around

As costs fall for manufacturing and a wide range of other activities affected by energy costs, and as consumers spend less on gas and more on other things, many oil-importing nations will see a rise in gross domestic product. And this higher economic activity is likely to boost investment in new plants, equipment and labor, financed by corporate cash sitting on the sidelines.

http://www.bloombergview.com/articles/2014-12-29/this-era-of-lowcost-oil-is-different?alcmpid=view

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s