| The oil price crash that brought 2014 to a close was itself a sort of benediction on Wall Street: It was the nail in the coffin to the so-called “peak oil” debate, in which many experts had argued that oil prices were bound to rise — perhaps forever — as the world’s choicest oil reserves ran dry. Such gloomy forecasts of dire shortage and endlessly spiking prices are as old as the market itself, but they have always proven wildly incorrect.
Today’s glut is only the latest reminder, as U.S. crude for April delivery closed at $59.73 a barrel on Friday after hitting peaks of more than $100 in recent years.In 1998, “Oil shocked” It was a fitting headline for an Economist article describing the state of the oil market. Shock was indeed what the market was experiencing..............................................Full Article: Source |