Connection Please?

We are hard pressed to see why falling oil prices are a cause for concern for the USA but it is the biggest producer of oil.  We can see the connection for Australia because energy is such a large part of their economy.  So why is the biggest impact in terms of percentage change Japan?  Japan imports almost all of their energy and yet buying a lower prices results in Japan down 2.8%, Australia down 1.7% and the US down 1.8%.

The market could be wrong (but it is highly risky to bet against it) and there is more going on.  Japan profits from lower oil prices so there is a bigger story to tell.  It could be Japan’s export orientation but South Korea is only down 1%.  Perhaps it is close enough but the relative losses don’t seem to make sense.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s