What Markets Are Telling Us About Future Energy Prices

This graph shows, for every year since 1990, what the markets’ expectation of long term oil prices, as represented by the longest date future, was.

So it is actually quite remarkable how quickly the view of the market on future prices of oil has changed in the past 2 years. What the graph says is that as of today, the market expects oil prices to still be around 60-70$/bl 5 years from now, and not to drift down to 20$/bl or somewhere in between.

The market has dumped the orthodoxy of the past 20 years, which is REALLY amazing, considering how deeply these long term expectations remain entrenched, usually.
European Tribune via EnergyBulletin.net