There I said it. The recent plummet in oil price has caught the attention of many. Its precipitous fall has fuelled the negative sentiment in the markets, as oil price is now perceived to reflect the state of the global economy. But I believe, unless you are looking to invest into the oil and gas sector, oil price is a mere distraction. Any obsession over cannot be productive.

Oil price is the outcome of two distinct causes

There are two reasons why oil price is at 13-year low, 1) Supply glut as OPEC nations seek to drive out shale producers and 2) Economic weakness in China lowering the demand for oil. The OPEC factor is a policy decision which is an entirely human-manufactured. It is not based on any fundamental weakness and it happens that its implication is lower oil prices. Unless you are a net importer nation, or an ......