After assessing the impact of immigration on the European Union, this week’s post concentrates on another current issue: the oil price decline and its consequences on the construction sector.
This global income redistribution from oil exporters to importers is an opportunity for the construction market: they can ride the falling Saudi bull as cheaper fuel prices, lower costs and stimulated EU economies may generate more demand.
The International Energy Agency is forecasting a lasting low price environment; therefore both short and medium term effects are worth studying. The direct effect of lower fuel prices is a boost both for companies in the construction sector and for most European economies. However, missing petrodollars in the world economy and Russia’s dependence on oil revenues hold an important risk for the future.
Such issues will be discussed at the 80th EUROCONSTRUCT Conference. Continue reading The oil price decline and the construction market: riding the Saudi bull