Oil Prices: Uncertainties, Confusion And Conspiracy

OPEC’s ‘need’ to maintain $100/B-plus sowed the seeds of recent oil price falls. What happens next?

By-Paul Stevens*

Oil prices have been falling. From 2011 to June 2014 the OPEC basket consistently averaged around $107/B. However, from a price of $108/B in June, the price has fallen steadily to $79/B so far in November, a fall of 27% in five months (see p28). This fall should not have surprised....