In the opening address to the meeting, Abdourhman Ataher Al-Ahirish, Libya's vice prime minister for corporations and president of the OPEC conference, pointed out that a stabilizing oil industry has been helped by a world economic recovery. However, he also said that several market fundamentals, including a rising American dollar, have helped play havoc with oil prices."Ample supply, moderate demand, a stronger US dollar and uncertainties about global economic growth have been key factors in this recent price trend. In addition, as OPEC has noted in the past, the impact of speculative activity in the oil market has also been an important factor," he said. "Nevertheless, it is important to recognize that if the recent price trend continues, the long-term sustainability of capacity expansion plans and investment projects may be put at risk." Market impact In addition to hurting oil prices, the news also sent the share prices of oil companies falling, with Husky Energy (TSX: HSE) among the heaviest hit with a 5.37-percent loss. Canada as a whole also suffered. The S&P/TSX Venture Composite index (INDEXTSI: JX) dropped 0.77 percent, or 115.98 points, to close at 14,922.44 points for the day. The TSX's energy sector is down 14 percent year-to-date. That said, the news did have fans in the auto industry, where analysts are forecasting rising auto sales due to the fall in oil prices. Carlos Gomes, a senior economist and auto industry specialist with Scotiabank, released a report detailing the rise of auto sales during times of historically low oil prices. The report notes that in 1986, 1988, 1994 and 1998 the price of oil was driven down for similar reasons as today, meaning that there should be more car sales in the near future. "On average, this has lead to an improvement of global vehicle sales of four percent. So we would expect something similar as we move into 2015," he states in the report, adding that the United States should see a larger gain.
Securities Disclosure: I, Nick Wells, hold no direct investment in any of the companies mentioned in this article. OPEC Confirms No Production Cuts, Oil Drops Below $70 a Barrel from Oil Investing News