Economy 52,857 Posted December 2, 2014 Share Posted December 2, 2014 http://www.theglobeandmail.com/report-on-business/top-business-stories/fill-er-up-collapse-in-oil-prices-will-buoy-global-economy/article21842548/ If prices were to remain as they are for a full year, it would save consumers world wide approximately $1.3 trillion and lift economic growth by 1.7% Of course oil producers are consumers too... but even taking that into account world economic growth would still be at least 50 basis points higher (0.5%) than without oil plunge. An economy set to grow by 2% might grow 2.5% instead! This actually has more stimulative effect on the economy than Quantitative Easing which the European Central Bank is considering expanding Prices may start to rise again by spring 2015 however according to many a--lysts although not as high as 6 months ago. Brent crude oil was at $115/barrel in June and about $70 now. its expected to stabalize around $80 within 6-9 months Link to post Share on other sites More sharing options...
Sara 1,144 Posted December 2, 2014 Share Posted December 2, 2014 Economics seems so confusing and arbitrary sometimes. Some people interpret the lower prices as weaker demand, which signals lower economic growth, but I like your interpretation better that lower oil prices should help everyone! Then again, we shouldn't be encouraging people to burn more fossil fuel....aaaaa!!! Too complicated! (I love your threads btw! ) Link to post Share on other sites More sharing options...
Economy 52,857 Posted December 2, 2014 Author Share Posted December 2, 2014 Economics seems so confusing and arbitrary sometimes. Some people interpret the lower prices as weaker demand, which signals lower economic growth, but I like your interpretation better that lower oil prices should help everyone! Then again, we shouldn't be encouraging people to burn more fossil fuel....aaaaa!!! Too complicated! (I love your threads btw! ) well the economy is weak... thats part of the reason prices are dropping. but the weak demand is the cause not the effect the point is lower prices will help economic growth. it generally does unless ur a country highly dependent on oil (like Russia) Also prices arent dropping JUST cause demand is weak. theres also a lot of new supply out there cause of the oil sands and shale boom. that kind of oil years ago wasnt extractable but because of new technologies it now is Link to post Share on other sites More sharing options...
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