Home » Investing » Cheap Oil-Who are the winners and Losers?

Cheap Oil-Who are the winners and Losers?

 

OIl pricesCrude oil prices have tumbled   more than 70 per cent since mid 2014.Currently crude oil prices are below the  $30 a barrel level.This price was unimaginable 18-20 months ago, when it was at $110 barrel.Market analysts are expecting it to hover around $20-25 per barrel in next few months,especially after the induction of Iranian oil in the international market.Low oil prices have brought numerous benefits to oil importing economies and damaged severely economies of oil exporter countries.Following is the list of major winners and losers in the present scenario.

Winners

US Economy

Mining,coal and oil industry have lost more than 130000 jobs last year due to falling oil prices.US economy is currently suffering from the fall of oil prices but it is expected that it will benefit it in the long term.According to the figures provided by the Steve Murphy of Capital economics ,US consumers have saved around $ 115 billion in last one and half year due to falling oil prices.

Experts believe that consumer spending will definitely increase in next 2-3 years due to this savings made by the consumers. Transportation industry,Airline industry and consumers are the main winners in the current situation.The Petroleum and mining industries are the main losers in this situation.

Facebooktwittergoogle_plusredditpinterestlinkedinmailby feather

About Emaad Qureshi