Nice summary today on Yahoo Finance highlighting the winners and losers in the US from plunging crude oil prices
Nice summary today on Yahoo Finance highlighting the winners and losers in the US from plunging crude oil prices. The most obvious winners of course, are the consumers. Less money needed for gasoline means more money for everything else. However, there are several negative effects of cheap oil to consider. First off, the fracking industry adds $300-$400 billion a year to US economic activity, and is basically not worth pursuing at the current price of oil. Moreover, cheap oil means advances in important renewable energy technology may fall by the wayside. With oil prices this low, using renewable energy becomes far less attractive to consumers. The article also lists the negative impact on energy investors and global unrest as factors. (VIEW LINK)
I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...
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