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The Impact Of Cheap Oil (And The Risks Of A 'Black Swan' Event) In 1 Chart

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The Impact Of Cheap Oil And The Risks Of A 'Black Swan' Event In 1 Chart
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It's no secret oil is cheap. In the past 18 months, a barrel of WTI crude has dropped from near $100 to $33.71. But what about the effect on consumers?

New research from Instavest shows how consumers have more cash in their pockets. Car and home sales are up over this time frame, while annual savings has risen 5.5 percent.

The data also describes the potential downside for global markets if oil stays lower longer. There are $4.2 trillion assets in sovereign wealth funds of oil & gas-dominated nations. "If they liquidate to finance a fiscal shortfall," Instavest wrote, stock markets could see a sell-off.

Risks of a "black swan" event are also worth monitoring. According to Goldman Sachs, $1 trillion of energy investments are at risk if an unexpected event creates more turmoil in the industry. Late last year, Bank of America said one black swan event could be a de-peg of Saudi Arabia's currency, the Riyal.

Check out the full impact of cheap oil below.

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Posted-In: Cheap oilAnalyst Color Education Commodities Previews Markets Trading Ideas General Best of Benzinga

 

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