The article that I read this week explained how oil has dropped due to new year sell offs in the oil market. On Monday, China's oil stocks fell by 5 percent with overnight interest rates for the yuan increasing to nearly 40 percent. This is both a 12 year low for oil in the stock market and a record high for the yuan interest rates. Because of this situation, Morgan Stanley warned that a continued devaluation of the yuan would result in sending oil prices lower. Clearly these results are demonstrating a change in the oil industry and Chinese currency.
Analysis- I think that this article is very interesting not only because it is showing a change in oil value, but also the connection of countries through economic situations around the world. I think that the US relies on other countries for resources and services in many areas, and it's going to be interesting to see how America is affected by that. I can connect this article back in US history to the "Gilded Age" where the transcontinental railroad was being built largely by Chinese immigrants and revolutionized transportation in America. The railroads also required lots of oil in order to run, causing oil to become a very important business at the time and setting it up as a major industry for the years to come.
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