Quote:
Originally Posted by MBAtarga
Lower demand (and therefore lower prices) on oil (and by-products) means the economy is slowing. Companies are not expanding and using more energy, transportation demands are lower which implies fewer products are being shipped (and therefore made), which means that workers aren't hired to make said products, etc. All that means lower corporate revenue and profit, hence your 401k that invests in those same corporations will go down with stock prices.
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But we are not talking about lower demand. Demand is up, but the supply is up even more creating a glut!
So every company out there realizes they are saving money on fuel and transportation costs, so they can finally afford that new giant oven or conveyor system or fleet of trucks or can lease that building across the street and higher a new crew and double production.
Lower energy costs BOOSTs the economy, creates MORE jobs.