An awful lot has been written about the drop in the price of oil
An awful lot has been written about the drop in the price of oil. The simple first round economic effect when oil drops in price is that users of oil benefit and their company share prices rise. But this doesn't appear to have happened. So, is something else going on? First, US consumers overall are actually lightening up on traditional oil usage - and have been doing so since 2005. Markets in part may be suggesting that whatever benefit attaches to falling input costs because of lower oil prices may be more than offset by the disruption which could be part of the economy as the oil industry is slowly wound back. Is this part of the reason why Ford and GM are down around -10% since the oil price fell after the OPEC meeting? (VIEW LINK)