New World Order

Markets plunging everywhere.  But why would market plunge when the cost of energy is falling?  This is pure foolishness but how do you tell fund and institution managers?  Moreover, it is very expensive to look and extract oil from offshore sites.  The world has gotten used to oil at over USD$100 a barrel yet when it is below AUD$70 per barrel, it is causing silly market response.  I cannot see how this plunge can be sustained.  My problem is knowing when is the trough...

Crazy markets

When price of oil falls, the cost of energy (used for transport and manufacturing) should drop too.  And when motorists save on fuel cost, they spend elsewhere.  Yet, the markets have been savaged by the fall in energy cost.  If the oil producers want to get screw by themselves, the consumers should lend them a hand.  OPEC producers think they are hammering the shale oil producers but in the long term, they are extracting their oil and selling them faster for lesser...  No wonder the Middle East mirage will be ephemeral.  Diamonds are forever, but oil gets burnt and it isn't endless.

So, for the time being, it is nearly impossible to think logically.