The price of oil has dropped since the beginning of November and it is having positive effects on the Swedish economy, especially in industries like transport and exports.
The price of diesel has dropped by around seven percent since 1 November 2014. This benefits the transport industry. A third of the industry’s expenses are from fuel for vehicles.
“It’s mostly long-distance freight over 300 km. For example, long-distance forestry transportation,” Torbjörn Heiersson, regional boss at the Swedish Association of Road Transport Companies, told Swedish Radio News.
Households that use oil for heating, and the Swedish economy in general, also benefit from the lower prices. But according to the director of the Institute of Economic Research, there is also a downside.
“It keeps inflation down, a problem perhaps for the Central Bank but it does mean that we get more for our money,” Mats Dillén told Swedish Radio News.
Lower oil prices are important for the export industry, when heavy oil-using nations, like the USA, India and Indonesia, have more cash to spend due to cheaper oil bills.
Related stories from around the North:
Canada: Will Russia’s actions in Ukraine affect relations in the Arctic Council?, Eye on the Arctic
Finland: Rouble collapse hits Finland, Forex stops buying Russian currency, Yle News
Iceland: From Arctic Circle 2013-2014, a big drop in the price of oil, Blog by Mia Bennett
Norway: Currency drama has little impact on tourism in Barents region, Barents Observer
Russia: Ruble crash will have a huge negative impact on cross-border trade”, Barents Observer
United States: Oil price collapse prompts agency to lower Alaska credit outlook, Alaska Dispatch