This is an insightful article from Bloomberg Business Week. It’s a recommended read. Check it out!
via Oil Falls as Record Iraqi Output Seen Compounding Surplus – Businessweek.
Whilst a weakened oil cartel should be good news for everybody apart from the oil exporters, there are risks. In particular, there is concern that political risks will increase with collapsing oil prices. In particular, there is acute sensitivity to a military escalation in the Middle East. I worry that there will be a ‘deliberate act’ in the Middle East to force a reversal of oil prices.