OPEC declars war on new shale production, and on low demand for hydrocarbons. Prices are being driven down to stimulate demand – the new hydrocarbon era has arrived!
My previous post, addressing the subject of oil price declines and the human propensity for conspiracy theory was one of my most popular ever. I ascribe this fact to the nature of conspiracies, which are populist by definition. But it is ironic that I should have gained so much attention for what was my least accurate post in a long time. Continue reading
Oil prices have made headlines across the globe in recent weeks, plunging from a solid $100+ range. The impacts have been widely felt. Even in Europe, where oil prices are vastly padded out with “environmental” taxes, pump prices have fallen. Countries selling oil have noticed the impact too, with currencies from the Norweigan Krona to the Russian ruble buckling under the pressure of reduced export earnings.
Where there is a sharp price move, so there is a conspiracy theory to explain it, some people seem to so totally reject open market economics as to deny even its theoretical existence. And nowhere is this more true than in the oil market. The current conspiracy debate is all the more fun, because it has multiple players (see illustration). What is the truth about the oil price collapse? Continue reading