Spencer England writes:
The marginal price of new oil is now in the $70 to $90 — where WTI has bottomed at its last three corrections. If we are at a bottom for the real price of oil and the real price will have to rise as we go forward to assure adequate supply for the third world countries like China and India. The important question may not be what will be the supply of oil, rather the important question is what will be the impact of rising real oil prices on growth in the advanced countries of Europe, Japan and North America. Will this be the driving force behind the Great Stagnation?