News

Are you wondering why financial markets are reacting negatively to the price of oil being too low? Shouldn’t an oil price around $30 a barrel be a good thing? After all, cheaper pump prices mean consumers have more to spend elsewhere.

We’re not talking about an 80’s rock band and a Bizarre Love Triangle. Rather a world that is dealing with a massive oversupply of oil and cash, and a clunky transition for the world’s largest economy.

In November, the RBA left interest rates unchanged, and they were vindicated with a number of key measures showing the economy improving.