03.04.2013 - Bullish on oil prices? Two reasons you might change your mind
For the oil market specifically, two massive structural changes have occurred since 2008. First, U.S. oil supply from horizontal drilling in tight shale formations has created a reversal of the four decade-long decline weíve seen in U.S. oil production. When I say reversal, Iím not just talking a minor blip; Iím talking about erasing a 40-year decline within five years. This truly is a massive structural change to U.S. oil markets. On top of that, in conjunction with the Great Recession, the world has figured out that thereís too much debt, and most of the developed world is going through a deleveraging period. Historically, whenever you deleverage, you get subpar economic growth, and subpar oil demand growth...............................................Full Article: Source
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