| The oil price collapse has taught us a lesson about the dangers of overestimating the influence of political machinations on markets. The assumption that politics, whether Saudi manipulation or collusion in the Opec oil producers’ cartel, would keep prices eternally above $100 a barrel was proved wrong. Now people are flipping to an opposite view, where market forces are king and politics no longer matters.
Instead of reading the tea leaves in Riyadh and Vienna, they are focusing narrowly on how commodities and capital markets will adjust to low prices — which in isolation is just as wrong and just as dangerous...............................................Full Article: Source
|