Downward oil price momentum and the news cycle

| 8 August 2008 13:38

Haven’t we been told time and again that much of the oil price rise was due to to external event risk like political instability and war? Well we’ve got this is spades and oil is still falling.

Today, Russia has launched a war against its neighboring country Georgia, who’s ex-President Eduard Shevardnadze was once Soviet foreign minister. This is a big deal. Also in the news is confirmation that a coalition of Pakistani politicians are looking for a way to impeach staunch U.S. ally and military dictator Pervez Musharraf because he is thwarting democracy. Pakistan has nuclear weapons, by the way.

It doesn’t get much bigger than that.

And oil: what has it done? It has fallen to a fresh low. What does that tell you about price momentum?

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

Related Posts
More About: , , , ,