The current oil price as far as I know is below sustainable production costs for much of the US shale oil industry. This will impact profits of oil companies (a source of income for many in terms of dividends and pension accumulation) but could it on balance be good for the consumer and businesses overall due to the reduced cost of filling up a tank? Time will tell..
I am hoping it will help consumers and provide support to economies. On a positive note it will sap the finances of hostile states who rely on oil income for their belligerent activities abroad.
I would be interested in other people’s thoughts.
Screenshot courtesy of Apple Inc. / Yahoo Inc.
