BUOYANT CONSUMERS.<\/strong> With the price of a fill-up falling to its lowest level in 11 years, U.S. consumers will spend $750 less per household on gasoline this year than they TEPID INFLATION.<\/strong> Declining energy prices tamp down inflation, which makes it easier for the Federal Reserve to keep short-term interest rates near 0—a boon for BUSINESS BENEFICIARIES.<\/strong> Airlines, truckers, and package-delivery firms will save a fortune, given that fuel accounts for as much as 40% of their costs. Retailers, POLITICAL PLUSES.<\/strong> Lower oil prices hurt the economies of some energy-producing U.S. adversaries, particularly Iran, Russia and Venezuela. That could make the world a INDUSTRY SLUMP.<\/strong> Falling oil prices hurt a key sector of the stock market. Since its peak last summer, the S&P Energy index has dived 21%.<\/p>\n SAGGING ECONOMIES.<\/strong> Though higher supply is a major reason for oil’s drop, investors worry that persistent declines are a sign of falling demand due to slowing. <\/p>\n JOB LOSSES.<\/strong> Oil at $50 a barrel could end the fracking boom and harm conventional drilling, too. Massive job losses could ensue.<\/p>\n LESS BUSINESS SPENDING.<\/strong> Nine of the nation’s 20 biggest spenders on machinery and equipment are energy firms. Expect them and others to cut back on capital outlays.<\/p>\n JUNK WOES.<\/strong> As oil prices have fallen, concerns about the viability of heavily indebted producers have climbed, so high-yield bonds have taken a hit.<\/p>\n FOREIGN FEARS.<\/strong> Sinking oil hurts big energy-producing nations and raises concerns that they and their national oil companies could default on their debts.<\/p>\n","protected":false},"excerpt":{"rendered":" Why the plunge in oil prices is roiling markets worldwide, and what it means for your pocketbook<\/p>\n","protected":false},"author":[281],"featured_media":0,"template":"","categories":[],"class_list":["post-6807","articles","type-articles","status-publish","hentry","author-kathy-kristof"],"acf":[],"yoast_head":"\n
\ndid in 2014, the government estimates. That will spur consumer spending, which will lift the whole economy.<\/p>\n
\nstocks.<\/p>\n
\nrestaurants and hotels benefit directly from increased consumer spending. Banks and credit card companies also win; revenues from transaction fees go up, and consumer defaults are likely to
\ngo down.<\/p>\n
\nlittle safer.<\/p>\nTHE NEGATIVES<\/h2>\n