fakir

Is the Market for Oil Reinflating?

Lets be clear here , I have heard so many people now say that investment will not take place if the oil price falls too low and further down the line there will be a spike, pure humbug. A rational actor with deep pockets (most oil companies) will invest through this cyclical phase to profit from the price rise when it comes due to demand driven shortage or natural attrition.
Most project take at least 3 years to come online so the most important factor is what the demand and price will be then. The current front month contract has more to do with the here and now which says that there is more suply than demand and so prices must fall.