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Gas prices go down and a bunch of energy related projects get cancelled. Good for companies that buy fuel, but bad for companies that find and produce fuel. Electric cars are now less attractive, solar power becomes less attractive, exploration and production companies lay off workers. The price (margin) the drillers can charge goes down. People with oil field rights stop drilling and wait for the price to go back up. It goes on and on...
Oil price is used globally as a barometer for worldwide economic activity. Some times the price of oil is moved up and down by other unrelated external factors but the measure is still effective at moving markets and interest rates. Not saying this is a valid indicator in every situation, just saying it has that effect.
-Mark.
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