Economics

Cheap Oil Is Bad for the Economy (at Least, So Far)

Goldman finds that a decline in energy investment has outweighed gains from consumer spending

Oil trucks rumble through Cuero, Texas.
Photographer: Spencer Platt/Getty Images

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By Matthew Philips

July 15, 2015 at 12:47 PM UTC

This article is for subscribers only.

It's been about a year since oil prices started their historic drop, falling from above $100 a barrel to a bottom of about $45 in March. After creeping back to around $60, prices are shaky again amid news of a nuclear deal with Iran and record Saudi production.

And low oil prices are good for growth, right?