Whether we like it or not, it appears as though crude oil is driving almost everything at the moment. It has been correlating positively with the equity markets, which makes sense because of oil’s obvious impact on the energy stocks. In forex, the likes of the CAD, NOK and RUB have all suffered big falls, which also make sense because of the fact Canada, Norway and Russia are among the oil exporting countries.
Global shares tumbled for a sixth day on Thursday and oil prices slid to levels not seen since the early 2000s, after China guided the yuan lower and Shanghai shares tumbled 7% in less than half an hour.
The Pain is Spain will not let Brent crude oil prices gain. Brent crude prices hit the lowest level since 2004 as uncertainty over Spain’s election is raising further concerns about European and global demand. Crude prices continue to fall as rig counts rise and demand expectations fall.