Roller
coaster move in prices is destructive for the oil industry and is
leading to investment cuts that may store up serious trouble for the
future
by Ambrose Evans-Pritchard
Telegraph.co.uk
Rampant
speculation by hedge funds and a rare confluence of short-term shocks
have driven the price of oil far below its natural clearing level,
coiling the springs for a fresh spike this year that may catch markets
badly off-guard once again.
“The price will rebound and we will go back to normal very soon,” said Abdullah Al-Badri, Opec’s veteran secretary-general. “Yes, there is an over-supply, but fundamentals don’t justify this 50pc fall in price.”
Experts from across the world – from both the West and the petro-powers – said the slump in fresh investment in 2015 is setting the stage for a much tighter balance of supply and demand, and possibly a fresh oil crunch.
Continue Reading at Telegraph.co.uk…
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by Ambrose Evans-Pritchard
Telegraph.co.uk
Rampant
speculation by hedge funds and a rare confluence of short-term shocks
have driven the price of oil far below its natural clearing level,
coiling the springs for a fresh spike this year that may catch markets
badly off-guard once again.“The price will rebound and we will go back to normal very soon,” said Abdullah Al-Badri, Opec’s veteran secretary-general. “Yes, there is an over-supply, but fundamentals don’t justify this 50pc fall in price.”
Experts from across the world – from both the West and the petro-powers – said the slump in fresh investment in 2015 is setting the stage for a much tighter balance of supply and demand, and possibly a fresh oil crunch.
Continue Reading at Telegraph.co.uk…
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