| Predicting the oil prices is a hundred million dollar question; in literal sense, it's a game of billions of dollars. This is one of the most difficult tasks, given that there're too many variables and moving parts on the economic, and more so, on the political fronts. Market punters are not willing to take a view for longer tenors and quote forward rates for larger volumes beyond 2/3 months. The recent phenomenon is surely more political than otherwise.
The similar situation was witnessed almost 30 years back, in 1985-86 when there was oversupply situation whilst demand, and hence prices, remained subdued. The meaningful difference this time round, however, is the enhanced world storage capacity availability - 85 million tons...............................................Full Article: Source
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