In an interview with FOX Business Network’s Stuart Varney, “The Five” co-host Eric Bolling broke down how cheaper oil prices will trickle through the economy.
He first explained the problem with cheaper oil prices.
“It’s a free market… So when prices for oil go down, and there’s some people who had put on a lot of extra workers, drilling, fracking… and they can’t afford to pay those people they are going to get laid off—and that’s the downside,” he said.
Bolling also calculated the approximate savings generated by current oil prices.
“The upside is that gasoline versus a year ago… Gasoline is down $.80 a gallon. If [you take] 376 billion gallons a year we use in America alone, and divide that by the household – you come up with $2,000 more cash to spend per household, just [from savings] on gasoline,” he said.
Bolling also said oil has a better chance of hitting $35 per barrel than $70 per barrel.
“There’s a big overhang in oil. That eventually has to make its way… through the refinery… Prices will come down… Cash is king in America—when you put more cash in a household they spend it. What happens to the spending? It goes directly to earnings,” he said