« Pie in the online sky | Main | Strange Times »

Oil on troubled

The oil price fell around $4 yesterday, settling somewhere between $63 and $66.5 a barrel. It was spluttering around the same at the time of writing after hitting $70 early in the week.

What does this tell us? The price has largely reflected the movements of the major stock markets. The rally in the FTSE 100 for a record-equalling 11 consecutive days, up to Tuesday, encouraged a belief that economic recovery is around the corner - flying in the face of figures showing a deeper than expected recession in the UK. Oil rose alongside.

That suggests a real recovery - and not just hope of one - may trigger at least as much and probably something more.

The real point is that $63-$70 is an unusually high price for oil outside of last year's price spiral and in the deepest global recession for decades. In fact, it is extraordinary - and sets the baseline from which the price will surely increase with any pick-up in global GDP.

If that happens alongside the kind of marginal recovery optimists predict for the UK - perhaps 0.5% growth next year, which amounts to stagnation - and no real change in the value of sterling, it spells more pain for the travel industry.

TrackBack

TrackBack URL for this entry:
http://blogs.travelweekly.co.uk/movabletype/cgi-bin/mt-tb.cgi/5433

Comments (75)

An interesting discussion is worth comment. There's no doubt that that you should write more on this subject matter, it may not be a taboo subject but usually people don't discuss these issues. To the next! Many thanks!!

3p2uGj I really like and appreciate your blog post.Really looking forward to read more. Cool.

JLZ3XF Major thankies for the blog.Really thank you! Awesome.

3sObjO Thanks a lot for the post.Really thank you! Will read on...

UCSSXm A big thank you for your article.Really thank you! Fantastic.

ThgKPt Thank you for your blog article.Really looking forward to read more. Keep writing.

Great, thanks for sharing this article post.Thanks Again. Will read on...

I cannot thank you enough for the post.Really thank you! Much obliged.

Thank you for your blog post.Really thank you! Really Great.

Thank you ever so for you article post.Really thank you! Awesome.

Thanks for sharing, this is a fantastic blog article.Thanks Again. Fantastic.

Major thanks for the article. Much obliged.

Awesome article post.Really looking forward to read more. Great.

Very informative blog article.Really looking forward to read more. Keep writing.

Im obliged for the blog.Much thanks again. Cool.

Im obliged for the post.Thanks Again. Want more.

Thanks a lot for the article.Much thanks again. Keep writing.

Thanks-a-mundo for the blog post.Really thank you! Want more.

Very informative blog.Really looking forward to read more. Much obliged.

Major thankies for the post.Thanks Again. Really Great.

Thank you for your blog.Really looking forward to read more. Will read on...

This is one awesome article.Thanks Again. Fantastic.

Awesome article.Really thank you! Will read on...

Hey, thanks for the article post.Thanks Again. Really Cool.

Im obliged for the blog. Will read on...

Great, thanks for sharing this article.Really looking forward to read more. Really Great.

I am so grateful for your blog.Really thank you! Cool.

This is one awesome blog article.Much thanks again. Keep writing.

Thanks a lot for the article post.Thanks Again. Great.

Thank you for your blog post. Will read on...

Great blog.Really thank you! Cool.

I value the post. Want more.

Im thankful for the article.Really thank you! Will read on...

Really appreciate you sharing this blog article.

Fantastic blog article. Really Great.

Really informative post.Really thank you! Keep writing.

Appreciate you sharing, great blog post.Really looking forward to read more.

Fantastic article.Much thanks again.

A round of applause for your blog.Really thank you! Fantastic.

Thanks so much for the article.Really looking forward to read more. Keep writing.

Major thanks for the blog article. Really Cool.

Appreciate you sharing, great blog post.Really looking forward to read more. Really Great.

Thanks so much for the blog post.Really looking forward to read more. Great.

loan:

A round of applause for your article post.Really thank you! Awesome.

I think this is a real great blog post.Really thank you! Awesome.

Major thankies for the article post.Really looking forward to read more.

Great, thanks for sharing this article.Thanks Again. Fantastic.

Fantastic blog article.Really thank you! Cool.

Im thankful for the blog article.Thanks Again. Want more.

I appreciate you sharing this blog. Fantastic.

Appreciate you sharing, great article.Thanks Again. Cool.

Thank you for your article post.Really thank you! Really Great.

Very neat blog article.Really looking forward to read more. Much obliged.

Really informative blog post.Really looking forward to read more. Will read on...

I loved your article. Cool.

I value the blog post.Really thank you! Want more.

I really like and appreciate your blog.Thanks Again. Cool.

A big thank you for your article.Much thanks again. Really Cool.

Im thankful for the post.Much thanks again. Really Great.

Really appreciate you sharing this article.Really looking forward to read more.

I truly appreciate this blog article.Thanks Again. Much obliged.

Im obliged for the article.Much thanks again. Great.

Thanks so much for the blog.Really thank you! Great.

I value the article post.Really thank you! Really Cool.

Im obliged for the blog post.Really looking forward to read more. Really Cool.

Im thankful for the post.Much thanks again. Keep writing.

wow, awesome article.Really looking forward to read more.

I think this is a real great article post.Really looking forward to read more. Really Great.

Thanks for sharing, this is a fantastic blog post.Really thank you! Want more.

Very informative post.Thanks Again. Great.

I value the article post.Thanks Again. Great.

Post a comment

About

This page contains a single entry from the blog posted on July 30, 2009 2:52 PM.

The previous post in this blog was Pie in the online sky.

The next post in this blog is Strange Times.

Many more can be found on the main index page or by looking through the archives.

Powered by
Movable Type Pro