Market history · Commodities ·
Oil falls below $30 and markets wobble
Oil prices had halved since mid-2014 as US shale production, OPEC's decision not to cut, and slowing Chinese demand created a glut. In February 2016 US crude briefly fell below $27 a barrel, its lowest since 2003.
Energy company bonds sold off, banks with energy loans came under pressure, and global equities fell in early 2016 before recovering as oil stabilised.
The takeaway
A commodity slump can spread into credit markets and banks, well beyond the commodity itself.
Sources
Asset classes:Commodities
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