19/07/2001

ECONOMY TO BENEFIT FROM CRUDE OIL PRICE FALL

A 10 per cent fall in the price of crude oil over the past fortnight has been heralded as good news for the business community.

Recent attempts by the Organisation of Petroleum Exporting Countries (OPEC) have done little to reverse the downturn in price, now resting at its lowest level since early April. Recent announcements of threatened cuts in crude output have failed to put prices up, resting just above $24 a barrel on Thursday 19 July.

Businesses stand to profit from cheaper oil prices due to the stabilising effect on the rate of inflation, which in turn often impacts upon the lowering of interest rates, revitalising a slow-moving economy.

Crude oil has lessened in value due to falling demand, in addition to increasing levels of world oil stockpiles, conditions which have led some analysts to describe OPEC’s tactic of tightening its grip on the crude oil market as fighting a losing battle against a global economic outlook. (CL)

Related Northern Ireland Business News Stories
Click here for the latest headlines.

10 June 2002
UK manufacturing goods price rise
The Office for National Statistics (ONS) have said that goods manufactured in the UK fetched slightly higher prices in May. The ONS said the price of goods leaving factory gates rose by 0.3% in May thanks to increases in tobacco, petroleum and other manufactured goods prices, however the annual rate fell to just 0.1%.
05 March 2020
Hotels Feel The Pressure As Covid-19 Takes Hold
The collapse of Flybe is just the latest blow to Northern Ireland's hotel sector as it battles against the coronavirus, a representative body has said.
06 February 2020
Trade NI Sets Out Plan To Boost NI Economy
Local business leaders have united to call on the newly formed Executive to rejuvenate Northern Ireland's economy. Huge global investment opportunities with the potential to create 65,000 jobs and ensure a highly developed economy exist for the region, according to Trade NI.
10 December 2001
Further falls in price of UK manufactured goods
The Office of National Statistics have produced a report which shows that the price of goods manufactured in the UK have fallen in the last month. Between October and November the UK producer prices fell by 0.4 per cent, compared with a fall of 0.2 per cent between September and October.
04 August 2011
RICS Highlights Construction Contraction
The divergence in performance between the construction sector in Northern Ireland and in other parts of the UK grew further in the second quarter of the year. This is according to the Royal Institute of Chartered Surveyors (RICS) Construction Market Survey for the second quarter of 2011.