Oil prices prove to be a tricky economy indicator

Cause and effect can be difficult to understand in financial markets. Kevin Armstrong, chief investment officer for the ANZ Bank and National Bank, considers, for example, oil and commodity prices.

A little less than a year and a half ago, with the price of oil hitting new highs of $US70 a barrel, I wrote an article in The Dominion Post questioning why the price was so high and whether or not the world was about to run out of oil.


At the time it was widely believed this particular oil crisis was different from previous crises, being driven by surging demand