Loading data...
Loading data...
The mirror image of rising oil — oil producers and oil-export-dependent economies get hit directly.
Companies whose production cost per barrel is relatively high (like shale oil extraction) can find themselves losing money on every barrel they sell when the price drops below their extraction cost — not just hurting profit, but the viability of the operation itself.
Countries whose government budget depends heavily on oil sale revenue are hit directly by falling prices — this also affects local companies and markets through the resulting contraction in government spending.
See Who Benefits From a Weak Dollar and also — industries where fuel is a major input cost (aviation, transportation, chemicals) benefit directly from lower fuel costs, exactly the opposite direction from oil producers.
Want to see this mechanism on a real stock? Try X-Ray or analyze a stock now
More research
This research is intended for general educational purposes only, does not constitute investment advice, and is not a prediction. Full details on the disclaimer page.