The net
benefits of lower oil prices and currency depreciation coupled with an already evident US rebound may not have been given enough time to lift GDP growth in other regions of the country.
Not exact matches
A Royal Bank
of Canada report released in early January even suggested that the
benefit of a
low dollar for exporters, coupled with an upswing in the U.S. economy and increased consumer spending in Canada, could offset the economic hit
of low oil prices.
Like other major European airlines, the Franco - Dutch carrier
benefited from
low oil prices and strong travel demand last year, while the collapse
of Monarch and Air Berlin has removed some competition from the market.
It says the economy, hit hard by
low oil prices, will
benefit from the growth
of an entertainment industry.
Over the coming year,
lower energy costs (and other comodity costs) will
benefit consumers and as
oil prices rise, 80 %
of U.S.
oil production will move to breakeven then substantial profit.
Meanwhile, a number
of EM governments are implementing reforms that could help spur growth, and
lower and stable
oil prices may
benefit oil importers in the emerging world.
Calling Wal - Mart «our best $ 35
oil idea» in a mid-December note, Nomura analyst Robert Drbul wrote that
low oil and gas
prices help Wal - Mart «for two key reasons: 1) we believe
lower income demographic consumers stand to
benefit most from
lower gas
prices, and 2) we believe its private transportation fleet (> 6,650 trucks; one
of the largest in the world) will realize cost
benefits due to
low fuel
prices.»
Phillips 66 is widely known as a refiner, and refiners
benefit from
lower prices of oil because they have to pay less for each barrel
of crude
oil to perfect (and can thus capture higher margins by doing so).
A fuel duty regulator, a position Plaid would like to instate, would have prevented motorists from enjoying the recent
benefits of lower crude
oil prices, as it would have increased the fuel duty.
My only concern is that the dividend will be very
low for next couple
of quarters, therefore no
benefits but the capital gain could be very important the day the
oil price goes up.
For an additional 25 cents per gallon you can purchase «downside protection» which gives you the
benefit of lower priced oil in the event the spot
price of oil is
lower than the $ 2.40 / gal on the day it was actually delivered.
US Economy Keeps Rolling The US economy
benefits significantly from
lower oil prices and is currently in a kind
of «goldilocks» scenario: The recovery has firmed while receiving a boost from
lower oil prices; those
lower oil prices are helping keep inflationary pressures muted, thus allowing the Federal Reserve to maintain very
low interest rates.
[While we're at it: a) I suspect the strength
of the dollar & yuan will add (smaller) pluses and minuses to the P&L, while b) the
lower oil price may add a second tailwind for OnePlastics in 2015, but larger customers & competitors will probably ensure much
of this
benefit gets passed along eventually].
Reuters explains: «Subsidies on
oil, gas or coal are meant to help the poor by
lowering the
price of energy but the report, issued on the sidelines
of a 160 - nation U.N. climate meeting in Ghana, said they often backfired by mainly
benefiting wealthier people.»
Last week we made the point that America's ongoing energy revolution is the main reason the United States is the world's leading producer
of oil and natural gas — a renaissance that is reducing
oil imports and
benefiting consumers in the form
of lower prices at the pump.
On the other hand, India doesn't have much
of an
oil industry to lose, so
low prices have brought economic
benefits, even easing the burden on the population
of removing government transportation fuel subsidies.
The idea is, if we allow
oil and gas corporations to exploit our land and water to extract fossil fuels, it will
benefit the average citizen by
lowering energy
prices and reducing dependence
of «foreign» energy supplies.
Analysis in the new WEO - 2017 showed that for the first time the largest share
of global subsidies that
benefit fossil fuel consumption went to keep electricity
prices artificially
low (41 %
of the global total), ahead
of oil (40 %) and natural gas.
According to a 2017 Africa Report by Knight Frank, Tanzania is one
of a small group
of African nations to have maintained GDP growth in excess
of 5 % in 2016, as it is an importer
of commodities, and so
benefitted from
low oil prices as well as growth in private consumption and investment.