As a result, corporate earnings and manufacturing businesses which are used to factoring in higher fuel costs have experienced rising deflationary pressures as well. Although, we'll find that oil poses more threats to corporate models compared to the consumer positives that is has enabled. Transportation industries such as the automobile and airline companies should see a sizable gain in revenue if not a similar drop in operation costs. Today, investors were introduced to the impressive performance of auto sales from FIAT-Chrysler, Ford, and GM, all corporations that were bailed out in the last Great Recession. I'm definitely bullish on stocks like Delta, American Airlines, and other air travel related companies. What may give a gain even more girth after an earnings report is the small, petty losses caused by concern for Hurricane Joaquin's possible landing in New England. It's been hard to focus on these positives of low oil prices when clamor over low inflation and abysmal energy performance stays in the spotlight, but Q3 earnings should be helpful in demonstrating its benefits. Fundamental predictions for the energy sector looks a little more dim, but their performance over the third quarter was not as disappointing as its commidity counterpart.
Okay, well maybe it wasn't that great. A lot of large cap energy stocks felt not only the pain of low oil prices, but an overall sagging energy market. Exxon-Mobil and Total managed to pare their losses below 10% for the quarter using their established infrastructure and diversified assets to assure their security. Neither of these companies, along with most other large cap energy blue chips, weren't hurt as much by the increase in borrowing, hence, why most of these tickers dropped less than the S&P Energy Index 18%. The black bar representing Oil and Gas Integrated Services showed a drop lower than 18% representing most of the large cap stocks in the oil and gas industry as a whole. Chevron and BP performed noticably worse than its competitor in Exxon with capital complications. BP's poor performance could also be attributed to continuing backlash from the Deepwater Horizon oil spill. Petrochina's demise was obviously the cause of Chinese weakness that defined this economic quarter's downtrend. Petrobras Brasiliero might also have been shown to experience the same type of losses in Q3. Both of these integrated services will see bearish times as borrowing in their home currency may be significantly harder with a strong dollar. Furthermore, their respective country's demand was lowered and continues to be lowered as emerging markets losses remain injurious indefinitely. In Q3 alone, investors pulled around $40 billion from developing countries' stock markets in an attempt to find more safety. Petrochina's 36.35% loss characterizes the previous quarter's price dynamics as well as the global slowdown reaching every corner of the earth with currency devaluations against the dollar depressing commodities. Projections for the last quarter? The energy sector should end the year with less losses than Q3, but overall, I see costly borrowing and more depressed prices keeping bearish sentiment atop any rebounds in the energy sector. WTI and Brent crude oil prices will be affected by the continuation of demand slowdown and sluggish supply decreases. Perhaps with reactions to the overall equities market, benchmark crude prices maintain lateral movement through the end of the year. As far as interest rates go, volatility and important economic indiactors, like jobs reports and GDP estimates, need to behave properly before the Fed can even consider tightening the money situation. For investors, Q4 is all about the stars aligning in the period before the next big market move that will happen before the year ends.