Oil prices have stopped their rapid decent. Concerns about arms negotiations in Iran pushed crude back to $91. Any breakdown in those talks is unlikely to help WTI to recapture $100.
Gas reserves in the US are at multi-year highs. There is an assumption that slow economic activity in Europe and China will undermine demand. OPEC says that $100 oil is a point at which it can be happy with the financial yield. And, long term, the assumption of most oil companies is that shale oil has extended the year at which peak production will occur.
None of these along is enough to keep oil prices low, and perhaps to push them lower. Together, they make a powerful force.
Douglas A. McIntyre
