The latest drop in oil prices has sounded the death knell for inflation fears in 2008, and a better season for bonds should ensue, believes Carl Weinberg, chief economist at High Frequency Economics (HFE).

He says that oil is now within striking distance of HFE’s near-term objective of $95 a barrel - a level that would bring prices back to their medium-term trend line, signalling the end of the oil price bubble of 2008.