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Could oil price fall create opportunity for real estate investors?

Nicholas Wallwork

Nicholas Wallwork

Editor-in-Chief
Staff member
Premium Member
Over the last six months we have seen the price of oil half from over $100 a barrel to less than $50 at its worst. The situation has recovered slightly for the last few days with some more positive comments from various groups around the world but the situation is still uncertain to say the [...]

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loribarnaby

New Member
While lower oil prices have hurt profitability for many energy companies this year, the story is flipped for consumers. Lower-priced oil means cheaper gas and energy prices, and that means more income that can be used for other purchases.
Lower crude oil prices may help some industrials companies but hurt others. For instance, fuel prices are among the largest expenses for airlines, so lower oil prices tend to benefit these companies.
On the other hand, industrial companies with upstream exposure to the oil industry, such as those that provide equipment to energy exploration and production companies, could suffer as companies look to limit investment in response to lower prices. Industrials with downstream exposure, such as those supporting refineries, may be less affected.
 
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