Rix oil market report October 2014

by
November 5, 2014
The oil price movements in October were certainly significant . With conflict gripping the usual oil hot-spots (The Middle East, North Africa, Russia) it seems a fair enough question to ask why prices are dropping, when historically such events would force prices up. In answer to this apparent conundrum, we have two broad schools of thought around supply and demand. The demand argument – much loved by the media - contends that the world economy is grinding to a halt, Chinese oil usage is slowing and therefore the brakes are being put on oil consumption. Add to this economic slow-downs in Brazil, India and the spectre of Eurozone failure rising from its (very shallow) grave and you have both a dramatic and gloomy picture – hence the column inches and TV spotlight for the media loves nothing more than a good scare story.

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