The oil price continues to bounce upward. I’m not convinced there’s any momentum behind it. Global consumption of oil is still growing at a rate less than half of what it was in 2010, all while supply continues to go up significantly as previously untapped sources of oil come online.
The numbers I’m seeing show oil production up 14 percent between now and 2020, while demand will only grow 3 percent. Now, my economics proficiency didn’t proceed much passed microecon 103, but that seems like an environment ripe for stable prices (at best). If we see $100 oil again in the next 5 years, I’ll be surprised.