Making Money Minute with Ron Hiebert - Oil Glut
Currently the world is producing about 2 1/2 million barrels of oil per day more than it is consuming. That glut is expected to at least double this year, and is making investors gloomy on the sector. Lower prices means lower profits and lower stocks. But falling oil prices also have an upside. Refiners of crude increase their profits because their feedstock becomes cheaper. Lower oil prices increase consumption, which is good news for companies that transport fuel like oil tankers and pipelines. Cheaper oil prices, mean companies that consume a lot of fuel, like railroads and airlines, can lower costs and increase profits. For more information listen to our Making Money Podcast with Ron Hiebert and Graham Hicks at letsmakemoney.ca or CFCW.com.
