Much is being made on the oil price falling from its recent highs, but its only at a 7 week low. Compared to last years price, its still horribly high. The UK economy grew at 0.2% last quarter and brings us perilously close to recession by the year end.
The main reason for spiralling oil prices is speculation by fund managers, now that demand has started to show some signs of easing, its not so attractive, the fund managers have to start looking elsewhere, or accept a reduced return. I do wonder if one or two of them got there fingers burnt.
Halifax cutting interest rates is not much comfort as inflation has now started to take off and unemployment is on the up. I doubt that it will attract new borrowers when the price of electricity, gas, food and transport are escalating, at the same time more and more people are worried about job security.
Industry is already in recession the rest will surely follow by the year end.
