Sunday, December 21, 2014

Why Saudi Arabia Said They Would Still Let It Flow

Roger Bootle at The Telegraph has a nice summary of the fall in oil prices and the whys and the why nots.

Three factors have come together to produce this big drop. The first is the slowdown in the world economy, led by China, but reinforced by the sluggishness of the eurozone. The second is increased supply, principally due to the shale fracking revolution in the US. And the third is the collapse of cohesion in Opec.



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