| As the oil price slumped to a four-year low earlier this week, immediate market chatter on whether it is going to be 2008 all over again followed suit. The first quarter of that year saw the oil price spike above $140 per barrel only to plummet below $40 as the global financial crisis began to bite. Being candid, in my opinion what we are seeing at the moment isn’t and (in all likelihood) won’t be a repeat of 2008-09.
While macroeconomics always plays a part, the circumstances of both price declines are quite different. Over the first quarter of 2008, malaise of the US housing market had begun weighing on the dollar’s performance as a currency...............................................Full Article: Source
|