Falling oil prices could lead consumers to spend more later

Cheaper gasoline and heating oil are giving consumers worldwide more money that they can use to step up spending later — and perhaps energize economies in the United States, Europe and much of Asia.

One factor is that widespread layoffs and spending cuts by oil drillers have offset some of the boost from steady consumer spending.

Since the start of the year, global stock prices have plummeted.

Many stock investors fear that cheaper oil reflects a worldwide economic slump that has sapped demand, particularly in emerging markets like China and Brazil.

[...] most economists say that a huge increase in the supply of oil, rather than a falloff in demand, is the main culprit for tumbling energy prices.

"The drop in oil prices is good news for Korean consumers," said Choi Kyung-Hwan, South Korea's former deputy prime minister.

Yet Choi, too, noted, in remarks at Davos, that falling oil prices reflect sluggish growth in emerging markets, which could hurt South Korea's exports.

Last year, the U.S. mining sector, which includes oil and gas, shed 130,000 jobs even as overall hiring grew at a healthy clip.