• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 9 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 8 hours California's Oil Industry Collapses Despite Shale Boom
  • 12 hours Knock-Knock: Aircraft Carrier Seen As Barometer Of Tensions With Iran
  • 6 hours Greenpeace Blocks BP HQ
  • 12 mins Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 17 hours The Consequences: Full-Blown Trade War Will Push World Towards Recession
  • 14 hours Australian Voters Reject 'Climate Change' Politicians
  • 3 hours Shale to be profitable in 2019!!!
  • 20 hours Global Warming Making The Rich Richer
  • 16 hours IMO2020 To scrub or not to scrub
  • 12 hours UK Needs New Wind Turbines
  • 11 hours Will Canada drop Liberals, vote in Conservatives?
  • 3 hours DUG Rockies: Plenty Of Promise, Despite The Politics
  • 18 hours Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 20 hours California Threatens Ban on ICE Cars
  • 22 hours Shell ‘to have commercial wind farms’ by early 2020s
Alt Text

Bank Of America: $90 Brent May Be Around Corner

Bank of America Merill Lynch…

Alt Text

The Fear Factor Is Back For Oil

While fundamentals suggest lower oil…

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

Trending Discussions

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

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News