Gene Epstein details the case for a very prolonged bear market in oil prices driven by surging production from deep water, shale and oil sands. These relatively new sources are providing a huge boost to previously estimated reserves and, coupled with slowing demand growth, could set the stage for much lower oil prices in real terms over the next decade. The implications for this are likely positive for consumer spending and real economic growth and extremely negative for countries such as Russia that are highly reliant on oil-and-gas revenues. While in the short-term oil prices may have some upward pressure from geopolitical concerns, longer-term the fundamentals seem to point to declining prices.
Here Comes $75 Oil Drum Prices
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