Has the oil price provided a warning for the market?
Has the oil price provided a warning for the market?
Oil markets are trading like we are in a recession: Oil prices are down another -7% today and now down -20% over the last 6 months. Despite record-high stock prices and a Fed calling for a "soft landing," oil markets are crashing. What are oil markets telling us? - X user the Kobeissi Letter
While all of the focus has been on the Fed, oil markets have been flashing recessionary signals. Headlines like the one below are the new norm. The reality is that global oil demand has cratered, particularly in China. China is the largest consumer of oil in the world. - X user the Kobeissi Letter
Oil can be seen as a forward indicator. While there are sustainable energy options, the demand for oil and its derivatives remains. Oil goes into many products and this can reflect the outlook of the producers in anticipation of market demand.
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