The Logic Of The Oil Price Drop

This year (well at least recent months) focus has been on the European “refugee” crisis and the terror threat from the Islamic State group. And these are important issues. But the most important economic issue is the dramatic drop in oil prices.

What is the cause of that drop? Well, a weakening Chinese economy, and a weakening of the oil producing economies themselves due to the oil price drop do of course contribute.

But the most important cause is the economic logic that Jim Rogers explained here.  (or more accurately that I explained after reading one of his books)

BTW: What about this whole “peak oil” thing?. The oil price drop seems to have made that theory a lot less popular….


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s