| The Bank for International Settlements (BIS), the global clearinghouse for sovereign banks, released on Saturday an update to its report on global liquidity conditions. As part of this update, BIS included its explanation of what’s happened in the oil markets and its safe to say that the members of OPEC are not likely to be impressed with the Bank’s conclusion.
Comparing the current 50% drop in crude prices to other episodes of oil price declines in 1996 and 2008, BIS notes that both previous price collapses “were associated with sizeable reductions in oil consumption and, in 1996, with a significant expansion of production.”..............................................Full Article: Source
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