Long term drivers and short term market irrationality make up for a real idiotic mix. China’s slowdown was easy to see for anyone who wanted to see it for many years. The problem was never if but rather when something ugly is going to happen. How long does the subterfuge hold? Less oil consumption will of course mean lower prices – metaphorically as the short term madness of the market never really plays along for long.
Apple’s big reveal yesterday that China’s economic slowdown will dampen revenues shows one reason why oil prices face headwinds despite OPEC’s move to dial back production.