{"id":15068,"date":"2015-12-08T07:04:52","date_gmt":"2015-12-08T12:04:52","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15068"},"modified":"2015-12-08T07:05:38","modified_gmt":"2015-12-08T12:05:38","slug":"guess-what-happened-the-last-time-the-price-of-oil-plunged-below-38-dollars-a-barrel","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15068","title":{"rendered":"Guess What Happened The Last Time The Price Of Oil Plunged Below 38 Dollars A Barrel?"},"content":{"rendered":"
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Guess What Happened The Last Time The Price Of Oil Plunged Below 38 Dollars A Barrel?<\/a><\/h3>\n<\/div>\n
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\"Question<\/a>On Monday, the price of U.S. oil dropped below 38 dollars a barrel for the first time in six years.\u00a0 The last time the price of oil was this low, the global financial system was melting down and the U.S. economy was experiencing the worst recession that it had seen since the Great Depression of the 1930s.\u00a0 As I write this article, the price of U.S. oil is sitting at $37.65.\u00a0 For months, I have been warning that the crash in the price of oil would be extremely deflationary and would have severe consequences for the global economy.\u00a0 Nations such as Japan, Canada, Brazil and Russia have already plunged into recession, and\u00a0more than half<\/a>\u00a0of all major global stock market indexes are down at least 10 percent year to date.\u00a0 The first major global financial crisis since 2009 has begun, and things are only going to get worse as we head into 2016.<\/p>\n

The global head of oil research at Societe Generale, Mike Wittner, says that his\u00a0\u201chead is spinning\u201d<\/a>\u00a0after the stunning drop in the price of oil on Monday.\u00a0 Just like during the last financial crisis, we have broken the psychologically important 40 dollar barrier, and there are concerns that we could go much lower from here\u2026<\/p>\n

\"Price<\/a><\/p>\n

One analyst told\u00a0CNBC<\/a>\u00a0that he believes that we could soon see the price of U.S. oil go all the way down to 32 dollars a barrel\u2026<\/p>\n

\u201cWe\u2019re in a tug-of-war between a heavily shorted market and a glut of oil in the U.S. and globally, as Saudi Arabia continues to produce oil at elevated levels to maintain market share,\u201d said Chris Jarvis at Caprock Risk Management, an energy markets consultancy in Frederick, Maryland.<\/p>\n

\u201cCouple this with a strengthening dollar as the market anticipates a U.S. rate hike this month, oil is heading lower with a near term target of $32 for WTI.\u201d<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Guess What Happened The Last Time The Price Of Oil Plunged Below 38 Dollars A Barrel? On Monday, the price of U.S. oil dropped below 38 dollars a barrel for the first time in six years.\u00a0 The last time the price of oil was this low, the global financial system was melting down and the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[2291,90,103,181,2310,5983,246,6061,312,6063,366,2240,1603,1529,383,10942,452,4901,10943,1264,694,1138,753,10944,8791,10945],"class_list":["post-15068","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-2291","tag-brazil","tag-canada","tag-crisis","tag-depression","tag-economiccollapseblog","tag-economy","tag-financial","tag-financial-crisis","tag-global","tag-global-economy","tag-global-financial-crisis","tag-global-financial-system","tag-global-stock-markets","tag-great-depression","tag-great-depression-of-the-1930s","tag-japan","tag-michael-snyder","tag-oil-crash","tag-recession","tag-russia","tag-stock-market","tag-stocks","tag-the-price-of-oil","tag-the-u-s-economy","tag-u-s-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15068","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15068"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15068\/revisions"}],"predecessor-version":[{"id":15070,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15068\/revisions\/15070"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}