Falling oil prices are certainly good for ordinary people and ordinary enterprises. First of all, the drop in oil prices is certainly a good thing for car owners. As of June 20 18, the number of motor vehicles in China has reached 3190,000. At present, the energy consumption of Chinese enterprises is huge, and the fluctuation of oil prices is also closely related to the people. Lower oil prices mean lower fuel costs, which indirectly reduces the cost of living and can slightly improve the quality of life.
Secondly, for energy-consuming enterprises, the decline in oil prices is also a good thing. At present, most industries in China's economy are energy-intensive industries, so when the oil price falls, it means that the company's production costs are reduced and the company's profit rate is improved.
Third. Can effectively reduce foreign exchange losses. At present, China's crude oil imports account for about 70% of the total demand, and its dependence on foreign countries is high. If the oil price is too high, it will lead to a large loss of foreign exchange, which may lead to an imbalance in international trade balance.
Fourth, falling oil prices will bring a series of benefits. When oil prices fall, people's living costs will be reduced, and funds will be much more abundant than before, which will indirectly promote consumption and tourism and improve people's quality of life.
Falling oil prices also have disadvantages. First of all, Venezuela, an oil-producing country with the risk of debt default, may not be able to repay its debts in the future as long as the oil price drops sharply and stays there for a long time, which will lead to debt default, and so will the tens of billions of dollars of loans owed by Venezuela to China.
Second, it is a bad thing for some domestic crude oil mining enterprises. The drop in oil price represents the decrease of their main business income, and the drop in oil price means the decrease of profit space for oil exploration enterprises.
To sum up, the short-term decline or rise of oil prices is a good thing to some extent, but the long-term rise and fall will not be a good thing. The profits of oil-producing countries will be reduced, leading to sustained losses, and the interests of developed countries will be damaged, leading to economic turmoil. In particular, the price of crude oil controlled by the United States cannot keep the oil price falling, and there will definitely be a wave of price increases after a small drop.