THE DEJA VU OF $85 OIL

摘要

It is time to address the 800-pound gorilla in the room. Oil prices have dropped 16% over the last 90 days, with the decline accelerating as slowing global demand and rising domestic supply displace imported light sweet crude, forcing it back onto the world market. The global impact from rising U.S. light sweet crude production is evident in the fact that crude prices are falling even as geopolitical events in Iraq, Russia and North Africa disrupt international supply growth. In other words, the oversupply situation could be worse.