In 1973 OPEC had an oil embargo on the US which rose to sharply higher prices.
Today the lower US Dollar coupled with rising supply from nontraditional sources such as fracking and oil sands has led to a temporary glut in the market.
Supply and Demand Adjustment Period
With oil on sale consumers are going shopping for SUV’s and larger gas guzzling vehicles. With the fast growth in consumerism in China, oil consumption will continue to increase over the next several decades.
China’s ascent marks “a new age in the history of energy,” IEA chief economist Fatih Birol said in an interview. The country’s surging appetite has transformed global energy markets and propped up prices of oil and coal in recent years, and its continued growth stands to have long-term implications for U.S. energy security. Source: WSW
Demand will meet supply on the world crude oil market the question is how long will it take to see $100 oil again? Could be in as little as a week if a terrorist attack hits a major oil producing country. Likely we won’t see $100 crude oil until 2016, that’s why for the second and third quarters of 2015 I will likely continuing to add to my energy investment portfolio.
I currently hold positions in CVX, ED, EPD, OXY, KMP, LINE, VLO, BTU and PBT.