DAVID FICKLING: The emerging market oil crisis is just beginning
'For much of the world’s population, we’re already at or near the worst levels endured during the 2008 price spike'
With Brent crude surging north of $85 a barrel and some analysts warning that $100 is just around the corner, it’s comforting to remember that we’re still a long way from 2008, when oil hit an all-time record of $147.50. Comforting, but wrong. For much of the world’s population, we’re already at or near the worst levels endured during the 2008 price spike. While dollar Brent still looks relatively subdued compared to its frenzy a decade ago, it’s a different story when priced in emerging-market currencies. In Brazilian currency, oil blasted through its 2008 record back in March and is now nearly 50 percent more costly. In Mexican pesos, Brent overtook that year’s levels back in May, and within the past month Polish and South African prices have also moved above their decade-ago peaks. India and Indonesia aren’t far behind. With emerging-market currencies falling against the greenback, the rising dollar price of crude is compounded for consumers in less wealthy countries. This dynami...
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