Jeff Kissel, who recently joined EPRINC as a Distinguished Fellow, provides a brief commentary on why low oil prices may reduce the economic pain from a (likely) forthcoming increase in interest rates from the Fed.
Trisha Curtis recently completed a detailed assessment of U.S. oil shale production in a low price environment. The research effort was supported by both EPRINC and the Oxford Institute of Energy Studies (OIES).
The heart wants what the heart wants, but like the Shadow, the market knows what the market knows, and markets are impatient. The next formal OPEC meeting is in June and there are some who believe that OPEC will wait until then to deal with the imbalance in the market between supply and demand. OPEC may want to wait but it will be the price set in the market that will dictate this calendar.