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Thursday, 16 April 2020

Day 31 of self-isolation - oil prices

 We went out for a walk. We took a footpath close to home that led across the local golf course, into a bluebell wood, past a bunch of houses and which then led to a road. As we walked down that road, we saw several people who we chatted with (at a long distance). I've never seen so many people on that road.

At one point in my life, I was supposed to be the expert on oil prices. That was a few decades ago, but it is an important indicator.

This is what has happened to Brent Crude, a key indicator of oil prices.


This is what happened to West Texas Intermediate, another key indicator


And the OPEC basket of crude oils


So, the price of oil has collapsed to a third of where it was pre-crisis. This is because we don't need as much oil right now, as we did pre-crisis.

It will recover after economies recover. But that could be a long time.

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