When The Price Of A Barrel Of Oil Rises, Why Do Business Articles Look At This As A Positive?

When listening to the news, the media outlets always seem to rejoice when oil prices increase, and lament when they decrease. Do they do this assuming that everyone out there has invested their money on oil? I can’t think of any reason why America in general would benefit from rising oil prices (environmental aspects taken out of the argument).

4 Responses to “When The Price Of A Barrel Of Oil Rises, Why Do Business Articles Look At This As A Positive?”

  1. John M Says:

    they don’t. They comment on a move that seems to be in a direction of predictability and stability. If the price seems too high, they get excited regardless of which way it moves, but down is good for most people, since we all consume oil either directly or indirectly through plastics and other petroleum products. If the price gets really low, they comment on an increase, because change from an extreme is also news.

  2. CriMsoNMiSSinG Says:

    I always thought it was because with oil prices being low, it means the economy in the US is also low. So when oil is low-cost, it means bad news for the US economy (aka the US dollar how lower value). But when it rises, it’s means better for the US economy.

    That’s not my thinking. I heard something like that from somewhere. I can’t remember where, it was a couple months ago. But that is something I heard about it.

  3. Charles L Says:

    From the point of a view of a person who is not an economist. I feel that it is an excuse for business’ to raise the price of the goods and services that they offer.

  4. Randall E Says:

    They think the underlying reason is economic growth, causing demand to increase, causing the price increase.

    The reality is it’s just inflation.