As the talking heads are all doing their usual–confirming a downtrend that has already been progressing for many months–the next consensus view is that the downturn in oil prices will be short-lived.
This long term view of WTIC since 1985 offers an alternative perspective on the extreme price spikes orchestrated by financial intermediaries the past 10 years, and why below $40 a barrel (green bar area) may actually be the natural resting place for West Texas Crude (lower for Canadian Crude) in the post-financial bubbles era…
The energy debt market is not feeling optimistic, as bond prices are evaporating in the once reckless ‘hot’ sector. But not to worry, investment bank ‘strategists’ remain universally bullish, the most recent Barron’s survey could not find one person to say stocks would fall in 2015. There’s some comfort for frazzled nerves…??
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