“Predicting oil prices is a mug’s game,” Alberta Premier Jim Prentice observed last week when discussing the impact that falling crude will have on his province’s budget. And someone’s always complaining about getting mugged.
While a barrel of oil has lost a third of its value since the summer—causing discomfort for some government budget-makers, investors and job-seekers—we shouldn’t forget the many potential benefits of cheap oil. From welcome relief for consumers to rising global growth to improved prospects for international peace, the gains far outweigh the losses when the price of oil drops.
First, the bad news. With oil supply outstripping …read more