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The Big Picture: Lower oil & energy prices

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About 18 months ago, crude oil prices in the futures markets were trading at around $US110-per/barrel. At its heyday, oil & gas corporations were reaping in cash bonanzas.

Along with the onset of new drilling technologies, such as hydraulic fracturing (fracking), oil & gas supplies were rising too. Oil-rich nations – Brazil, Russia and most Middle East countries – were basking in a windfall of soaring tax revenues and prosperity.

They were happy times indeed for them, but the economy is similar to life, with its ups and downs. Yet, economic cycles, empowered by market forces, can ensure overall balance.

If energy prices are too high that hurts the retail sector, since shoppers pay more for energy costs and have less available cash for other purchases. So, what comes up does go down in our “supply meets demand” world.

http://tacticalinvestor.com/the-big-picture-lower-oil-energy-prices/

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