The Price of Oil and Equity Markets: How Interconnected are They?

The weekend meeting of major world oil producers in Doha intended to craft a freeze in oil production has ended without an agreement. Iran’s refusal to attend, and Saudi Arabia’s insistence that all OPEC members agree to the freeze resulted in a stalemate. As a result, the price of oil is once again in retreat. The biggest immediate losers are the producing countries whose fiscal budgets have been bludgeoned by the plunge in crude prices. And all but the lowest cost shale producers in the U.S. will remain under pressure to curtail production further.  


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