Crude oil is the most heavily traded commodity in the world and one of the most economically significant prices on the planet. The price of oil directly affects the cost of transportation, manufacturing, heating, and electricity, which means it ripples through virtually every sector of the economy. For investors, oil’s price movements are not just relevant to energy stocks. They affect inflation, which affects interest rates, which affects every asset class. They affect the dollar, which affects commodities and multinational earnings. They affect consumer spending, which affects corporate profits. Understanding the oil market and its transmission to other assets is…
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