The reduction in crude prices will have a tremendous positive effect on the economy, and should counter some of the negatives we’re now seeing.
The price of crude is now 77% of its peak price of $110 per barrel. This will act similar to what a 23% tax cut would do for the economy. Should affect everything we buy, including food.
We’ll see below $3 regular soon. I’m not saying things will boom, just that there’s enough good here to counter some of the bad. The bad news for Obama is that the drop is not supply driven, no way he can take credit, unless you consider the fact that demand is in the tank because of his horrible economic policies. I think the slide in crude continues, may get below $70.
I agree 100%, but he will take credit anyway.
I agree with you that falling oil prices is a good thing (and I expect Obama to take credit for it at some point) but it may not turn around the economy. We saw gas prices fall last late summer/autumn and it didn’t help the economy all that much although it probably did help consumers.
Trucking companies, in particular, are helped by lower fuel prices and when those go down, the market also corrects.
But oil was artificially way too high and this is a good correction.
If it does for any length of time, the layoffs in the drilling industry (and the spinoff declines elsewhere) will offset a whole bunch of the feelgood from 'new jobs', provided the job losses are even reported.