A customer prepares to fill the tank of her car at a fuel station
A customer prepares to fill the tank of her car at a fuel station in Sint Pieters Leeuw, Belgium December 5, 2014. Wholesale petrol prices have slumped by 35.5 percent since reaching their peak for the year in June, but in more than half of European Union countries prices after tax have fallen by less than half this amount. REUTERS/Yves Herman Reuters/Yves Herman

The falling oil prices may not be such good news for the countries that import the commodity, like Australia. Investor confidence may have been impacted by the long term effects of the current situation. The uncertainty of the oil prices is already affecting the Australian stock markets.

The Australian stock market index S&P/ASX 200 was down by about 1.68 percent in the previous day's trade. According to a report by ABC, the fall is the result of investors weighing the risks of falling oil prices. The commodity has fallen in the past few days and is currently trading at just over $63.

Normally a fall in the oil price is viewed positively by countries that import the product. Lower crude oil prices typically mean lower petrol prices and cheaper air tickets that result in higher disposable income in the pockets of consumers.

But the recent fall in oil prices has not been a result of some technological innovation that has resulted in lower operating costs. The drop is a result of oversupply in the market, primarily because the U.S and Canada have emerged as major oil producers.

The cost of extracting oil has not changed and this has already impacted some of the Gulf countries that have revenues from oil sales as a major component in their budget. The OPEC countries' decision not to cut production of oil led to a further drop in prices.

The lower oil prices may not be sustainable in the long run however, as more and more countries producing the commodity feel the pinch. Investors are reportedly holding back because they are now not certain which way the oil prices are actually headed.

The OPEC countries have affirmed to intervene by cutting production if they see that the drop in oil prices become unsustainable. But some of the oil producing companies that have a higher cost of production may have to close down if the low prices prevail for a longer period of time.

Some of the richer Gulf countries, like Saudi Arabia, may be in a better position to tide over the current situation of low oil prices. But oil producing companies and countries that do not have sufficient reserves may be severely impacted. Investors may especially watch some of the U.S oil producing companies that are losing money at the current prices.