The drop in crude oil the past couple of months has been absolutely unprecedented and is already in the process of reshaping the financial landscape for years to come.
![freefall](https://slopeofhope.com/wp-content/uploads/2020/04/freefall-508x1024.png)
SlopeCharts has crude oil’s continuous futures contract back to March 1983, and this nearly 40 year history is eye-opening (as always, click on the image for a much bigger version).
I’ve highlighted a couple of interesting phases in this history: the first Gulf War (green tint, showing the lead-up to the war and its aftermath) as well as the big boom in globalization (remember BRICs?) followed by the financial crisis crash.
![longcrude](https://slopeofhope.com/wp-content/uploads/2020/04/longcrude-640x345.png)
Even with all this past drama, it is dwarfed by what has happened just in recent weeks. I thoroughly enjoyed David Stockman’s write-up of what this means in the bond market (whose Contra Corner you can learn about here). I also wanted to point out that he wrote the following in The Great Deformation years ago, which proved to be quite prescient:
![sundown](https://slopeofhope.com/wp-content/uploads/2020/04/sundown-640x627.png)