It’s what they call six of one and half a dozen of the other. It’s unfavorable to those who sell wholesale petroleum, and it’s good for those who purchase that petroleum and turn it into value-added products and services. The thing to note in these stories is who is doing the complaining.
The energy producer market isn’t as big as the energy consumer market. Barriers have just been pulled down.
Oil goes down. Stocks go down. Gold and silver go down. Are any of these tied to each other? Or is it simply manipulation.
Except it’s really not—there are way more petroleum users than producers. Lower prices are a net good for the economy. The only question is how much the lower prices are indicative of a slowing overseas economy.
When you get this extreme volatility, it means some bets in the financial and futures markets got destroyed. This can create shadow runs in the banking system.