<p>It is not necessarily bad news. </p>

<p>Simply put, if you're willing to buy product x (bread, car, house, ect.) then falling prices are good news for buyers, but bad news for the sellers. The same logic applies for oil. If you are a buyer, you are optimistic about falling prices, however being a seller would make you loose money and/or postpone new investments. </p>

CC BY-SA 4.0
2020-03-09T09:43:38.057Z
2020-03-09T09:43:38.057Z
R_quester
<p>Today I read  an artcicle about the falling oil price (maybe it'll go under 30$ per barel the next days). Why is this a bad news? Lower oil price can give an advantage for a higher productivity.</p>

CC BY-SA 4.0
2020-03-09T08:20:53.273Z
Why do you think it is bad news? Without us having seen the article this is difficult to guess. Perhaps it was in the Oil Producer's Weekly magazine.
Giskard
CC BY-SA 4.0
2020-03-09T08:31:42.667Z
As Giskard pointed out it’s not bad news and most economists know it. In fact it’s an example of positive supply shock in some textbooks as a lot of industry still runs on oil... of course it’s a bad news for oil producers and people who invested heavily in oil on commodity markets, but overall people will benefit
1muflon1
CC BY-SA 4.0
2020-03-09T09:03:42.497Z
@1muflon1 I did not point out that falling oil prices are not bad news. I was asking for a source/more details.
Giskard
CC BY-SA 4.0
2020-03-09T09:27:42.543Z
@Giskard Bloomberg article....https://www.bloomberg.com/news/articles/2020-03-08/oil-in-freefall-after-saudis-slash-prices-in-all-out-crude-war?srnd=premium-europe
liontass
CC BY-SA 4.0
2020-03-09T14:12:01.423Z
The article seems to be clear on whom this is good for and whom this is bad for.
Giskard
<productivity><oil>
Low oil price and impact
liontass
# Low oil price and impact

(Asked by: username_0 on 2020-03-09)

Today I read an artcicle about the falling oil price (maybe it'll go under 30$ per barel the next days). Why is this a bad news? Lower oil price can give an advantage for a higher productivity.

**Tags:** productivity, oil

> **Comments:**
> **username_1**: Why do you think it is bad news? Without us having seen the article this is difficult to guess. Perhaps it was in the Oil Producer's Weekly magazine.  
> **username_2**: As username_1 pointed out it’s not bad news and most economists know it. In fact it’s an example of positive supply shock in some textbooks as a lot of industry still runs on oil... of course it’s a bad news for oil producers and people who invested heavily in oil on commodity markets, but overall people will benefit  
> **username_1**: @username_2 I did not point out that falling oil prices are not bad news. I was asking for a source/more details.  
> **username_0**: @username_1 Bloomberg article....https://www.bloomberg.com/news/articles/2020-03-08/oil-in-freefall-after-saudis-slash-prices-in-all-out-crude-war?srnd=premium-europe  
> **username_1**: The article seems to be clear on whom this is good for and whom this is bad for.  

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## 1 answers

### Answer by username_3 on 2020-03-09. Score: 0 | Accepted answer

It is not necessarily bad news.

Simply put, if you're willing to buy product x (bread, car, house, ect.) then falling prices are good news for buyers, but bad news for the sellers. The same logic applies for oil. If you are a buyer, you are optimistic about falling prices, however being a seller would make you loose money and/or postpone new investments.


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