Thursday, January 22, 2015

Better Late Than Never: Analysts Say Low Gasoline Prices Will Help Global Economy -- January 22, 2015

Note: initial production numbers for wells coming off the confidential list today have been posted; 50% of wells coming off confidential list today went to DRL status. 


Remember all that talk about global economy slowing down: that Chinese and US GDP would decrease (I'm ignoring the EU, a lost cause)? The analysts have suddenly noticed that the price of oil has come down a tad. CNBC is reporting:
Tumbling oil prices may increase world economic growth by 15-20 percent this year, but several countries will still lose out. 
The World Bank forecast that the world economy would expand by 2.6 percent in 2014 before growing by 3.0 percent in 2015 and 3.3 percent in 2016. This expansion would be thanks to low oil prices, as well as continued recovery in the U.S., a gradual improvement in the euro area and receding domestic headwinds in slower-growing developing countries.  
It's not much, but every little bit helps. What surprises me is that many of us suspected this several months ago.

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