Historical prospective of oil# Stock
a*1
1 楼
Since the discovery of oil in 1860, there has been more time when oil is
over supplied. Even though people has been worried about the supply for most
of the time, the price has been suppressed before the Arab oil embargo in
1973. Since then, OPEC has been controlling the price relatively effective
and the oil market has been seller's market.
However even with the oil price spiked since 1973, there has always been
spare capacity of between 5-10% of world demand with OPEC being the swing
player.
Today's oversupply of 2% is nothing if you think of spare capacity of near 0
%. The current oversupply of 2% is low in historical perspective and 0%
spare capacity is very dangerous. Anything can tip over the market in a flip
of a finger.
over supplied. Even though people has been worried about the supply for most
of the time, the price has been suppressed before the Arab oil embargo in
1973. Since then, OPEC has been controlling the price relatively effective
and the oil market has been seller's market.
However even with the oil price spiked since 1973, there has always been
spare capacity of between 5-10% of world demand with OPEC being the swing
player.
Today's oversupply of 2% is nothing if you think of spare capacity of near 0
%. The current oversupply of 2% is low in historical perspective and 0%
spare capacity is very dangerous. Anything can tip over the market in a flip
of a finger.
