Slump in Oil Rates Boosts Hospitality and Tourism in America

The past couple of years have been a tense and strenuous time for  the global oil markets and the oil index in general. Ever since the discovery of fracking as a process by the United States of America, oil futures tumbled in the financial markets, and all oil producing and exporting nations across the world began incurring great losses through the oil sector. Oil had largely dominated many global financial markets for the longest time in the past three decades. However, with the advent of new technology through science, most of conventional oil drilling techniques were made redundant, adding more pressure to the oil industry.

 

Oil drop results

Oil futures and markets had fallen to an all-time low, and was considered to be the lowest fall in the oil futures in the entire history of the oil markets, after the adjustment for inflation. Oil prices had slumped to 30 dollars a barrel at one point last year, making it a very dire and onerous situation. Many oil firms also had to shut their business operations and downsize drastically. Additionally, the global geo-politics of a glut in the oil supply worsened the situation as there was a standard demand for oil, but the supply superseded it by nearly thrice the amount. The slump in oil markets however was not all bad news for everyone. On the contrary, several industries that were intensely dependent on oil prices began to rake in great profits in light of the oil crisis.

The transport sector and the trade sector benefited greatly from the slump in oil markets. Once the oil markets started falling, and the oil prices reduced, many more national economies benefited out of cheaper transportation cost. However, one of the most evident areas and sectors that benefited from the drop in oil prices was the tourism and hospitality sector. A study by JP Morgan in the United States of America discovered that the average American citizen was spending a lot more on travel and restaurants.

The study

The study was carried out in 23 of the 50 states in the United States of America, and recognized that people were spending all their savings that resulted from the oil drop in vacations and travels. There was also a substantial amount of the savings spent in the consumption of higher quality fuel for their vehicles.

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