Caterpillar CEO On The Impact Of Oil

The construction and mining equipment giant Caterpillar Inc. CAT has been having it rough in the past month; shares are down more than 13 percent and recently trading at $92.25.

Caterpillar Chairman and CEO Doug Oberhelman was recently on CNBC to discuss the slump in oil prices and its impact on the mining business.

Impact Of Oil

“Certainly we are watching oil, there is no question now there is going to be an impact on us. We are seeing some of that nearly days [sic.], I think, most of our customers are kind of talking, ‘get through the holidays; get through the January;' see what happens to oil price before they make major decision. But we will have an impact and we will see it and it won’t be like we have seen in mining and some of our big cycles in the past, but we will see it in 2015. No question,” Oberhelman said.

Related Link: Caterpillar Reports Machine Sales Declined 9% Through October

Wouldn't Low Oil Price Be Good For Caterpillar?

“Well, that’s right. When every one of our machine uses a diesel engine [...] in this giant stimulus program we have all just been blessed with, [it] will work its way through it eventually. But in the meantime we will feel the impact of that. I find it rather interesting when all the people talk about interest rates at 2 percent [...] and $2 gasoline, $55 oil, [as if] it’s bad for the economy. I think, the economy overall is going to be great,” Oberhelman added.