Further acceleration of production growth from non-OPEC suppliers, specifically from the resurgent U.S. shale sector, or a hiccup in global demand will be far bigger threats to the price of oil than the current volatility roiling equity markets.
That premise may be difficult for some observers to accept given that crude oil prices and equity prices have increasingly moved in tandem in recent years – breaking their traditional inverse correlation – and this week’s price action only serves to reinforce the idea that crude and equity markets are closely linked.
