Expensive oil is bad for the economy because it's expensive to produce things. Cheap oil is bad news for the economy, because it's an indicator in a fall in pr

Expensive oil is bad for the economy because it's expensive to produce things. Cheap oil is bad news for the economy, because it's an indicator in a fall in production, if the reason it's cheap isn't because of new fields, but because of lower demand. Even if it is due to new sources (e.g. fracking) the perception that it's an indicator of global production may be sufficient to override any realistic benefits.