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What Is the Longer-Term Impact of Weak Oil Prices?
Best Answer
3963 points
MNSL answered one year ago …
We had a manipulated commodity market and now it is bursting.. Prices of some assets and commodities not come down drastically until now will come down dramatically in the next 12 months.
Really this situation has made excellent investment opportunist for intelligent investors now.Today market is better than yesterday due to lower oil and global interest rate cut and due to other factors. Sooner than later we will see sector based rally in global markets.
Lower oil will benefit many industries. Such as car, hotels. Airlines, retail, transport and almost all types of industries. Some alterative energy industries will collapse.
Inflation will come down. Consumer purchasing power will increase. Some sectors will benefit most. These sectors will outperform market in the next 18 months and next decade.
Pl ses following web link as well.
http://seekingalpha.com/article/109565-what-is-the-longer-term-impact-of-w eak-oil-prices
Answers
678 points
BoxCar answered one year ago …
On 60 minutes Dec7 Saudi Oil minister said OPEC would like to eventually see oil stabilize at $75/barrel- But for now, lower oil price means both fuels and plastics will cost less and that should help prime the global economy. Also new oil extraction technology such as horizontal drilling to find pockets of oil in variable layers promises
to enhance oil reserves not accessible just a few decades ago- this explains how oil reserve estimates jumped in size where pundits thot them to be artificially inflated
Point is, we ain't running outa' oil yet. LIfe is change and predictions need updates
2082 points
alanj answered one year ago …
Just about everything will cost less. This will be good for almost everyone except maybe the rich oil tycoons. They'll be making less profit. But so what. They've been making out great for the last couple of years while the rest of us have been hurting. It's time that the tide has changed. We need some relief.
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904 points
jillybeansisme answered one year ago …
We might not be running out of oil yet, and there might be massive reserves available; but, let us not forget this quickly how hostage we can become to the almighty oil barons. Obama is pro-alternative energy. The Big 3 are in major trouble. I expect prices to hover for awhile and then creep up over the next couple of years begining during next year.
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