Turbulent geopolitics will dominate the 2015 price rebalancing
What has made the current oil status quo so dangerous is that Saudi Arabia, Russia, Iran and Venezuela have built their economic budgets on $100-per-barrel oil pricing.
As the pundits, analysts, financial experts and self-styled business meteorologists gaze into their 2015 economic crystal balls, all seem to realize the 50% drop in oil prices has opened the door to dire consequences, whose fate has yet to be determined.
It’s easy to blame the fact that while world demand expanded 600,000 barrels a day, America’s 1.6 million barrel increase over that time period had turned a moderate oil shortage into a glut.