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Why no economic boost from lower oil prices?

Many analysts had anticipated that a dramatic drop in oil prices such as we’ve seen since the summer of 2014 could provide a big stimulus to the economy of a net oil importer like the United States.

Can Lower Oil Prices Cause a Recession?

A drop in oil prices means less money in the hands of oil producers but more money in the hands of oil consumers.

Supply, Demand, and the Price of Oil

Could the price of oil be a value such that the current quantity produced exceeds the current quantity consumed?

U.S. tight oil production decline

U.S. oil production has begun to drop in response to low oil prices, but not as dramatically as many had anticipated.

Energy prices and consumer spending

Among the disappointments in the 2015:Q1 GDP figures was weak consumption growth, which was a little surprising given the extra cash most consumers have on hand as a result of lower energy prices.

Oil Prices as an Indicator of Global Economic Conditions

But another reason oil prices have slid so much is weakness in demand for the product, which may be related to a slowdown of overall world economic growth.

Evaluation of Quantitative Easing

Last week the U.S. Federal Reserve closed a chapter on the experiment with quantitative easing, just as the Bank of Japan opened a new one. Seems like a good time to comment on some of what we’ve learned so far.

How will Saudi Arabia respond to lower oil prices?

Oil prices (along with prices of many other commodities) have fallen dramatically since last summer. Some observers are waiting to see if Saudi Arabia responds with significant cutbacks in production.

The Changing Face of World Oil Markets

My conclusion is that hundred-dollar oil is here to stay.

Keeping Oil Production From Falling

Production flows from a given oil field naturally decline over time, but we keep trying harder and technology keeps improving. Which force is winning the race?
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