Henry Thornton writes:

Wall Street continued its correction overnight. Oil is the supposed to be the reason.

The Economist writes: “Oil prices hit yet another record this week, on fears of political
instability in the Middle East and refining problems in America. So far, the
world economy has managed to chug along without much ill effect. But how long
can consumers go on paying ever more at the pump without cutting back elsewhere?
And why aren’t high prices bringing new supplies to market?”

And in conclusion: “… even without new supply, as prices creep towards
$70 a barrel, they will get close to setting real records, as well as nominal
ones. At those levels, consumers, and their governments, can be expected to
react. The market may eventually be able to accomplish what environmentalists
seemingly cannot, by forcing energy-gluttons out of their sport-utility vehicles
and on their way to a more fuel-efficient future.”

The Australian share market has been uncharacteristically robust, but will
eventually follow the rest of the world.

Read more here.