Chamber of Commerce explains what a drop in crude oil prices means for Victoria

On Tuesday we saw a loss of over $3 on the price of crude oil and though Wednesday we saw an increase of $1.72 cents on the near month benchmark grade, the total price of a barrel of oil is under $50.

President and CEO of Victoria Chamber of Commerce Randy Vivian says the drop is a double edged sword depending on which sector of the economy you look at.

The timing of the drop means more money for consumers to spend on holiday items or travel, but if prices continue to drop, oil production could slow or even stop and that would have a ripple effect on Victoria’s economy.

“We’re going to see it effect some restaurants because a lot of these guys are spending the night here, they are eating in our restaurants.” Vivian says. “So, the real test will be what happens after the first of the year. If they stay down then that could really see an effect on our economy if they rise then we should be back to normal.”

Vivian noted that so many local jobs are tied to the oil industry and if prices continue to drop, it could be detrimental in terms of layoffs in the long rung.