Prices are plunging, producers are cutting back and consumers aren't picking up the slack
Every week, hosts Tori Stilwell, Dan Moss and Aki Ito bring you a jargon-free dive into the stories that drive the global economy.The U.S. is awash in inexpensive oil. That’s usually been a plus for the economy, because even though energy companies get squeezed, consumers get a break at the pump.
Now, that relationship seems to have gotten a bit hairier. Oil producers have slashed jobs and investment, yet consumers haven’t picked up the slack, instead keeping most of the gasoline windfall as savings. Given this, is cheap oil now bad for the economy? Ryan Sweet, a senior economist at Moody’s Analytics, joins Tori and Dan to discuss.
