• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 1 hour Shale Oil Fiasco
  • 3 hours Everything you think you know about economics is WRONG!
  • 4 hours USA v China. Which is 'best'?
  • 16 hours Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 2 hours Global Debt Worries. How Will This End?
  • 12 hours My interview on PDVSA Petrocaribe and corruption
  • 2 hours Quotes from the Widowmaker
  • 1 day Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 24 mins Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 50 mins Tesla Launches Faster Third Generation Supercharger
  • 23 hours Petroleum Industry Domain Names
Alt Text

How To Invest In An Oil Contango

Given the ongoing volatility in…

Alt Text

What’s Behind The Bounce In Oil Prices?

Oil prices saw some significant…

Alt Text

Why Are Oil Markets Suddenly So Volatile?

Volatility in oil markets has…

4xp

4xp

4XP is an award winning trading platform that offers new customers an incredible starting bonus and the ability to trade: FX, Indices, stares and Commodities.

More Info

Premium Content

The Indirect Effects of High Oil Prices

Rising oil prices usually promote a negative reaction from most people. While there are definite disadvantages to high oil prices, there are some indirect effects that aren’t necessarily good or bad, just not always expected.

Alternative Energy Surges – Rising oil prices always boost alternative energy discussions, and in turn, investments are routed in that direction. This helps create jobs, promotes R&D spending and eventually, may help drive down oil prices by providing a viable and clean alternative.

Declining Growth in Asia – China is one of the fastest growing countries in the world in terms of industry and economy, and they heavily rely on oil to maintain their growth rates. Not only do higher oil prices slow them down like any other country, but they use energy in a much less efficient way, hurting growth even more.

USD Goes Up – While this may not be the case at the current price hike, the US Dollar has traditionally seen a rise in value when oil prices went up. This happens because oil is generally priced in dollars, and the demand for the currency rises with higher energy costs.

Other Energy Sources – When oil prices rise significantly, it is almost always followed by an immediate increase in demand for other energy-centric resources, such as coal and natural gas.

Other Investments – When oil prices go up, many investors look elsewhere for investment options. This has a stimulating effect on the economy.

Oil-Related Products – Products which both directly and indirectly affected by a rise in oil prices include flights, hotels, plastic (manufactured from oil), etc.

Foreign-Made Cars Surge – Many foreign car makers, such as the Asian manufacturers, will see a rise in sales. The higher gasoline prices push consumers towards more fuel efficient cars, which until lately wasn’t a main design concern for American made cars.

By. 4XP

4XP is an award winning trading platform that offers new customers an incredible starting bonus and the ability to trade: FX, Indices, stares and Commodities.




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play