/biz/ - Business & Finance

>>11895324
>>11895284
I suppose the thinking is that falling oil prices can signal falling demand which can be a sign of a recession. However, we're only really seeing a fall in demand in China, the rest of the price fall is caused by a supply gut. Of course, China is a real worry due to the amount of unregulated debt it has and it's real estate bubble and there's a big potential for contagion there.

>>11895369
This is the more important factor, I believe, cheap oil can grease the way for American profits, undoing some of the impact of the trade war and tight labor market.

>>11895393
>>11895512
Lower oil prices mean oil producing countries get less dollars, which hurts their currency and economy. This has less of an impact on the global economy because the US is the only real source of growth anyway. Besides Russia, none of the big oil producing countries pose real systemic risk to the global economy. It could mean more instability in the middle east, however.