Greasing the wheel

Singapore

A SHARP oil price decline is generally a sign of oversupply, and an oil glut is normally an economic lubricant. The oil price is down almost 60 per cent since June, and about half of the decline looks like a case of oversupply. But cheap crude might not provide much oomph, because central banks are gumming up the works.

Of course, oil may not be cheaper merely because there is too much of it. Some economists think that the decline in crude prices in the second half of 2014 is primarily because of weak demand. If they're right, the excess of crude will do nothing fast to propel GDP growth.