What a difference a year makes. The narrative this time in 2013 was that an imminent war in the Middle East, particularly between Israel and Iran, could push oil prices sky-high and cause a global economic crisis. Oil was trading around $120 a barrel and there was talk among “analysts” that prices could hit $200.
Well, fast forward to this morning where WTI was down another whopping 2% trading at $65 per barrel, a new four year low. This is on news that Morgan Stanley lowered its 2015 estimate by 29% based on OPEC's decision and continued weakness in the Chinese economy. The jobs reported which boosted the dollar also hurt oil prices because a stronger dollar makes it more expensive for most countries to buy oil which is a dollar denominated commodity.
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Imagination is more important than knowledge. Knowledge is limited.