| On August 20, 2014 I warned Forbes.com readers that oil prices were going to drop a lot. (See article; the price of WTI was $104/barrel at the time). I’ve rarely felt more conspicuous about a prediction and I’m in the business of making predictions. Now what? Prices have collapsed–or I should say: the bubble has popped. What happens next?
First, prices are firming up while news of marginal production cuts invite buyers. In the long run, prices will reflect the advent of new supplies of cheap oil coming from two very important sources in the Western Hemisphere. Mexico’s Pemex reforms could lead to a one million barrel per day production increase while President Obama’s restrictive energy policies are about to be reversed...............................................Full Article: Source
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