Could 2015 herald a 'New Oil Order'?
This is a very interesting article about the current and future scenario of oil. We have experienced low demand for oil in December at a time when supply has been high in spite of the dropping price of oil. Moreover, demand will probably remain low for several more months until May when demand will rise for the summer driving season.
With these facts in mind, the price of oil will probably remain in the $50-$64 range for at least several months. I doubt we will ever see $40 oil like some predict because this would tear apart the OPEC cartel as the article mentioned. Only Saudi Arabia can output oil at a $40 price, and OPEC members would revolt in that situation. I have noticed a trading range of $102 to $114 with Chevron, and there may be several opportunities for 10% trades in CVX or RDSA in the next several months as prices remain volatile.
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