Cheap Oil?

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With energy policy pandering the topic of the moment, I found this Foreign Policy interview with Lehman Brothers’ chief energy economist, Robert Morse, noteworthy for his suggestion that the market might already be correcting itself on the fundamentals. Morse underlines the opacity of both supply (ie. How much reserve capacity does OPEC really have?) and demand (ie. How much oil does China really need?) as a driver of the recent price surge. But with increases in Iraqi production and global inventories, and a cost-driven decline in demand, Morse sees oil back in the double digits by election day. If what […]

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