Even with the slight drop in oil prices today, at $124 / bbl, oil still remains more than two standard deviations above the long term price trend. So, statistically speaking, the price will eventually revert to the mean at some point, probably sooner than later.
Global energy demand is weakening, supply is rising, the Dollar is starting to rally and….
……….oil prices go up? WTF?
This egregious rise in prices, if allowed to continue, can sink the general market. History has shown this to be true in any extended oil price cycle. About the only beneficiaries will be energy companies, much to the chagrin of the other sectors.
Caution advised.
Developing…………
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