By Micah Halpern
I've Been Thinking:
Oil fell to $94 yesterday.
The price of oil has been on a continuous slide and it will continue to slide even more.
There has been a 10% fall in the price of oil over the past month.
There has also been a 10% increase in US oil production against the average US output over the past 5 years measuring from the end of October.
The price of oil would probably have dropped even more - but the instability in Egypt, Syria and in Libya has caused the price of oil to increase. With those increases and with the additional output by the US there was still a drop in oil prices to $94.
Instability is normally the major indicator for oil prices. And the Middle East has not been calm. But in this case the supply side of the equation actually has an even more powerful impact on the price of oil than does turmoil in the Middle East.
Micah@MicahHalpern.com
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