As you’ve probably realized from your most recent gas station receipt, the price of crude oil is tumbling globally. The result? Lower prices at the pump.
Of course, if you think the impact on your wallet has been mitigated, imagine what the savings look like for companies like Apple, Samsung, Amazon and others that have to move massive amounts of product on a daily basis.
As CNBC has been reporting almost non-spot, crude prices presently sit at 5-year lows. And they may continue to dip.
“You have all these OPEC officials reiterating they are not going to cut production, so you are seeing selling into the rallies,” Phil Flynn, an analyst at Price Futures Group, tells CNBC.
Consequently, investors believe Apple could be a big beneficiary of the selling momentum in crude oil.
“That directly benefits Apple, because it significantly reduces the cost of shipping components and finished goods,” reports Apple Insider. “Apart from shipping costs, Apple’s own cost savings from cheap oil are tempered somewhat by the company’s aggressive efforts to move away from oil to renewable energy sources, including the solar, hydroelectric and biomass fuel cell energy facilities it has built to power its vast data centers in the U.S.”