New oil price plunge sends ripples through global economy

November 21, 2018 - 5:22 am

FRANKFURT, Germany (AP) — Sharply lower oil prices are sending ripples through the global economy, lending more spending power to consumers shopping for Christmas gifts and making fuel cheaper for people in poorer countries.

The fall doesn't yet match the 2014-2016 slump to $26 per barrel but will have its winners and losers. The decline has seen the international crude benchmark, Brent, fall under $65 per barrel from a four-year high in early October over $86, and U.S. crude slide to under $55.

U.S. retailers should see a boost, but falling investment in oil rigs could offset the overall impact on economic growth. Ian Shepherdson, analyst at Pantheon Macroeconomics, says "lower oil prices are now a net drag on the U.S. economy."

Major producer Russia is more insulated, now able to balance its budgets at lower prices.

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