Tighter Oil Markets: Get Ready for Another Spike in Oil Prices

…In the beginning of the year, oil prices dropped to $48.20 a barrel. All of a sudden there was a rush of people saying prices would fall to $30 a barrel before they rose back over $55 a barrel. We got a good chuckle out of that. Prices soon rebounded and moved higher.

A few months later, we heard some slightly different projections. Now prices would definitely plunge below $40 a barrel before they reached $65 a barrel. Once again, those people were outraged that oil prices broke the latter price last month.


After that, I read dozens of forecasts that everything is getting better for the oil markets. Refineries are starting to come back online. And don’t forget that OPEC can always just start producing more if things get too tight.

You can guess what I heard after that . . .

“We’ll never see oil break $75 a barrel. I bet it’ll go back down to $50 a barrel before it goes higher.” (I didn’t have the heart to let them know that the price of Brent crude oil hit $78.40 a barrel last week.)

Well, oil passed $75 a barrel this morning. That put me in a good mood earlier, just before checking my email. I couldn’t wait for their next guess.

Energy and Capital