Low oil prices will save China $100 billion dollars this year if prices can remain where they are or even lower. China is the worlds leading importer of crude. They must be thanking their lucky stars.
Let China and the world enjoy the low oil prices while they last. Once the Saudis achieve what they are after, the prices of oil will begin edging upwards once again. But in the meantime, I'm sure it's not only China which is [or should be] thanking OPEC for the low oil prices.
Yeah it's great for the the Chinese as well as the global economy. That being said the Chinese weren't doing too bad in the first place, so maybe countries inside the EU are actually more relieved by the drop in oil price? I'm not too sure how long this situation will last but I'm very glad that the oil price came down, though I think the current levels are exaggerated.
Since China has to import oil, it will affect them far less then USA. USA will have to stop producing oil from fracking. This will cost USA jobs and set them behind. Then probably in a year or so, when the price of oil increases, USA will start fracking again. Opec will drop the price of oil again.
Too much of a drop in oil prices will not be good for us. Energy has been a main driving force in our recovery the last several years.
Yeah China, and other major crude importing countries will definitely be benefiting right about now, however, as has been pointed out by quite a few people now, this drop in prices might eventually come back to haunt us. Analysts have said that due to the prices being so low, consumption has increased a lot, but this has put pressure on the supply. Now, it may not pose a problem in the short run, but maybe in a few years time, low supplies will lead to heavy increases in price. But I suppose there's no harm in making the best of the opportunity while you can.
China also benefited greatly from the crisis in Russia. While the US and Europe restricted imports from Russia and got sanctions put on themselves, China did whatever they wanted. They are like switzerland now.
It's great for China and a lot of others for now. But it's only great if it's sustainable, and / or the man and the street doesn't start to adjust his life under the assumption that it will last forever. Because when the price does start to rise again, it effectively acts as a tax hike on corporations and the consumer, increasing operating costs and making things more expensive. So we should enjoy it while it lasts but we shouldn't get too carried away.
The US is also making a lot off of refining products and sending them to Central and South America. Cheaper oil prices will allow more of these products to be purchased by Latin America.
This is also and issue for Alberta. A lot of companies have dropped their budgets. The cuts were in the billions. At the time 4 were listed and together they totaled over 4 billion in cuts. Some numbers from some of the sites there are in the $47-51 price range to break even. The overal rig count in Canada is said to be down 30% compared to last year. So as much as I love the cheap fuel. It affects peoples jobs. It also effects me getting a job out there. James
