What Crude Oil Prices in the $40s Means for Consumers and Companies - 24/7 Wall St.

What Crude Oil Prices in the $40s Means for Consumers and Companies - 24/7 Wall St.



Here is a very good article at 24/7 concerning the effect of lower oil prices.  U.S. oil companies will certainly cut back to survive any extended downturn in prices.  Supposedly, airlines and truckers should benefit from lower oil, but there are limitations here.  For example, if you look at a chart of Delta Air Lines (DAL), their stock price is currently falling like a rock along with the stock market in general.



So, things are not acting like you think they should.  If the stock market falls far enough, jobs will be lost, and this will cause a further decline in the market.  On the other hand, as the article mentions, there is a possibility of the price of oil quickly returning to $85 per barrel by the end of 2015 if supply gets too low.  ERX, the 3x energy stock, is the way to invest in oil's recovery although the bottom for oil is unknown.  You might initially lose money on ERX before you get it all back along with a handsome profit.