Mohamed El-Erian, former co-chief investment officer of Pimco, shared his view of low oil price in Bloomberg today:
“As costs fall for manufacturing and a wide range of other activities affected by energy costs, and as consumers spend less on gas and more on other things, many oil-importing nations will see a rise in gross domestic product. And this higher economic activity is likely to boost investment in new plants, equipment and labor, financed by corporate cash sitting on the sidelines.”
Since U.S is a net oil-importing nation, the low-price of oil shall continue boost the growth.
