A decade ago, oil hit an all-time high in New York. What better way to celebrate than with a massive selloff?

On July 11, 2008, West Texas Intermediate crude touched US$147.27 a barrel on the New York Mercantile Exchange on concern Israel was preparing to attack Iran’s nuclear program and amid supply disruptions from Brazil to Nigeria. That overshadowed economic worries, including the lowest consumer confidence since 1980. At the same time, the dollar was near an all-time low against the euro.

On Wednesday, it was the opposite story, as economic worries trumped supply disruptions. WTI plunged 5 per cent to just above US$70 a barrel on concerns that an escalating trade war between the U.S. and China will threaten global economic growth and as Libyan crude exports increased. That overshadowed the biggest drop in U.S. stockpiles in two years and forecasts for lower supply from Venezuela and Iran amid U.S. sanctions. The Bloomberg dollar spot index is 30 per cent higher than in 2008.