All about Oil!!

The world economy (and to some extent world politics too) is in a mayhem this year. And all because of the sliding oil prices. But like every goddamn thing in the world, even the coin called cheap oil has two sides.

On one hand, cheap oil is bad for drillers (who bleed money and in extreme cases shut down, tightening supply), banks (whose energy sector clients are going delinquent) and oil-driven economies (with spilling effect on their politics as well).

On the other hand, low oil prices are good as the resulting low energy costs are good for the businesses and consumers that buy it. Ideally, they’ll take those newfound savings and throw it right back into the economy.

Well the answer to this debate lies in this well written article by the master analyst James Surowiecki from The New Yorker.

Tanking – An Article from The New Yorker.

The oil market is far more noise than signal. But right now it’s the only sound that investors seem able to hear.