mplaut

Fundamentals Don't Support Oil at $55-60 a Barrel

These arguments are correct but they only give directional conclusions. That is, the fundamentals do not support a rise from 45 to 55. On the other hand, no one really knows what the real price of oil is or should be. Many analysts think that 55 is a much more realistic price for oil in terms of drawing in more supply down the road than 45. So it may be that oil overcorrected down to the low 40s and has now returned to its natural level given the poor fundamentals so well described here.