Conventional Wisdom No Longer Applies To The Oil Market lweb.es/f1600 10.25.2016
The oil market has experienced structural changes since prices peaked in June 2014. Prices have been driven down by supply-side factors that are principally increased production from U.S. shale and Saudi Arabia’s market share defence. At the same time operational efficiency has been increased, as for example with the companies in the U.S. shale areas, thus begging the question of whether OPEC still matters. Within this context of change it looks to be that the conventional wisdom with regard to the global oil market no longer applies.