Price dislocation makes planning difficult. Central bankers, therefore, telegraph their policy intentions (as long as you are familiar with their arcane jargon), so that affected economic participants can plan their lives in an organised fashion. In the energy sector, price shocks lead to the development of alternatives e.g. electric vehicles, where Tesla is the poster
The latest FM Radio interview with Armin Diem discussing the markets and specifically the impact on the oil price, with the sanctions on Iran now lifted and oil shipments potentially further flooding the supply to the market. [Source: FMR Radio – January 18, 2016]
Update: Shell and BP have tumbled to the bottom of the FTSE 100, wiping out the index’s gains, as the oil price dived to near seven-year lows amid the fallout from OPEC’s decision not to cut production. The price of Brent crude has tumbled 3.3% to $41.58, the lowest level since the early months of 2009, amid fears
