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Potential Winners of Low Oil: Part 1

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Oil prices have fallen nearly 70% from $107 per barrel in July 2014 to near $33 in February 2016. The reason is well known and summed up perfectly in a recent report from the International Energy Agency — the oil market is drowning in oversupply. The magnitude of the decline has surprised market participants and sparked a host of fears about domestic and global economic growth. In a market full of negative headlines, it is important to remember that while lower oil prices are a threat to energy companies and oil-exporting countries, there are other areas of the market that may benefit. In part 1, we review potential sector and industry beneficiaries if oil prices remain low for the foreseeable future. In part 2, we will take a closer look at the consumer, as well as the countries and regions across the globe.

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