Oil managed a modest 2% rebound last night to $43.25 but the chart says it all:
Whether we can stick it here I doubt but let’s wait and see. The long term outlook has also crashed:
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You can now buy oil seven years out at $62. That’s about right in my book with US shale as the global swing producer. John Kemp agrees:
In a prescient editorial published in the New York Times in July 1985, oil expert Daniel Yergin reviewed the factors which had caused prices to fall and how the market would eventually recover.
The full text of this article is available to MacroBusiness subscribers
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
In a prescient editorial published in the New York Times in July 1985, oil expert Daniel Yergin reviewed the factors which had caused prices to fall and how the market would eventually recover.
