by Peter Cooper, ArabianMoney:
The oil price has a long record of plunging the world into recession. Indeed pretty much every major economic downturn for the past 40 years can be put down to oil. The global financial crisis of 2008 was no different with a sudden spike in oil prices to $147 a barrel that July as the straw that broke the camel’s back. Remember until then financial markets were trading calmly close to record highs.
Is there not a sense of deja vu this summer? Still think back a little to the 1974 stock market crash or the recession of the early 90s. A sudden spike in oil prices was what popped these bubbles.
What is it about oil that makes it so important to the global economy? Has its importance gotten greater or lessened over time?
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