It is another signal that the World is:
1) no longer worried about a major supply interruption, and 2) a slowing Global economy has damaged demand and will continue to do so.
The comes comes at the right time.
There have been concerns for months that high Crude Oil prices, the prices of petrochemical products, and the rising cost of gasoline would knock the frail US and Global economic recovery off its tracks.
Now that the recovery has already been beat up some, low Crude Oil prices may help stabilize troubled economic growth, or at best not make it worse.
A lingering problem about Crude Oil prices is that OPEC has signaled the $100 bbl Crude Oil is about right for its members to put money in their national treasuries without the price undermining the Global economy.
OPEC has kept production almost as high as it can. It remains to be seen if that will continue if Brent falls much more. Stay tuned...
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.