The last two weeks have been a wild ride for oil. In writing the articles for this week, what interested me most was the technical shift that occurred on February 21, 2017, but didn’t seem to result in a major market shift until the last few weeks. When viewed historically, as I discuss in this week’s article about price volatility, every bench mark indicator peaked on February 21, 2017, and then began a steady decline. Obviously, until we view historical data after the event, we can’t see that. But I nevertheless remain fascinated that on that particular day, the overall impression of the media was that oil remained headed for positive territory.
In the last edition of The Five Star Standard, we presented a view held by many that we may be looking at this all wrong: the world is about to enter into supply deficit and unless there is a rush of capital expenditure, oil could be headed up dramatically in the coming years.