Oil shock in reverse

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For years the issues has been out of control oil prices to the upside. Domestically that’s been a huge issue as energy independence became a rallying cry as the United States and other Western economies were at the mercy of OPEC and high oil prices.

Times have changed! Now we’re seeing an oil shock in reverse, as fracking in the US and weaker demand around the world have led to an oil glut, with the Saudis making things worse by pumping production even higher to drive down prices in an attempt to weaken rivals like Iran and put pressure in US fracking production.

Where will this lead us, and what effect will this have on the push for alternative energy? Those are interesting questions and we will see how things play out.

The immediate concern for many is how this new reality will affect financial markets and the world economy. Consumers are certainly happy as cheap gas prices lead to more disposable income. But some are worried about the destabilizing effect of cheaper oil.

  

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