Sunday, June 28, 2015

Five-year oil price trend:

Oil price trends are a key economic indicator. So, it is worth noticing a snapshot of the oil price widget for the RH column of this blog:

This looks like a change to a new level after several years in the US$ 100+ range. 

But this level is about double the about US$ 30/bbl that hitherto obtained. 

It is also a level that supports fracking and shale oil, which would be locked out at the lower level. 

A clue -- given the economic concept that prices are set at the margin -- as to what is likely driving this. END