Chris Lau

How Bad Is the Oil Shock of 2008?

The oil price shock is a bubble that we all see and feel, yet it hasn't popped. The US is facing a fairly significant growth in unemployment (see May data released today), the US autos are finally shifting production to smaller more fuel-efficient cars, and the housing market is declining world wide. The latter will have the most profound impact on demand, and therefore the consumption of oil.