The slump in oil prices is not all bad, Reserve Bank governor Glenn Stevens says.
Oil-producing countries have suffered a loss of income, while investment in exploration and productive capacity are being cut back, he told a parliamentary committee on Friday.
But the fall in oil prices to around $US30 a barrell, which has been the result of rising supply than falling demand, should not be interpreted as uniformly negative.
"On the contrary, a fall in oil prices resulting from additional supply has usually been seen clearly as a bonus for consumers and many businesses in advanced economies, including our own," Mr Stevens said in his prepared speech at the start of the hearing.
RBA assistant governor Christopher Kent downplayed the effect of lower energy prices on Australia's energy exports.
The effect of lower oil prices on the market price for LNG has been rapid, but should have little impact on investment currently under way, he said.
"As best we understand through our liaison efforts the lower oil price, and hence the lower gas prices, is not likely to have substantial effect, if any, on the plans that are already afoot for plants that are well advanced and nearing completion."
While the lower oil price would affect profits in the LNG sector, the costs of running LNG plants are so low that they will continue producing, Dr Kent said.
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