“Market rout as oil slide rocks energy groups” | Are we entering the next economic crisis
Oil is down 30% in the last 3 months. There are strong hints this is a systemic shift and not an aberration.
He compared the surge in North American shale to the dotcom and subprime mortgage booms, and said Opec’s objective now was “to get small producers with large debts and low efficiency to pack up and leave the market”.
Is hard to tell who is really behind it.
- Middle east producers attempt to kill off smaller US shale producers who have produced a world oil surplus
- US influence on Saudi Arabia to isolate the Russian economy
- Simply a middle east producer attempt to regain control of the oil market
Whatever the underlying motivation they all have the potential to be systemic resulting in lower petrol/gas prices at the pump, but more importantly changes in the economic infrastructure that will impact interest rates, stock markets and inflation.