Trend Reversal in Oil Markets? C.P. Chandrasekhar

In early June 2016, the price of US West Texas Intermediate (WTI) crude oil crossed the $50-a-barrel mark for the first time since July the previous year, having risen from lows of around $25 a barrel in February.  A gradual reversal of the previous steep decline had begun. This had set off speculation that the world economy is entering a new phase of the oil-cycle with prices expected to touch upward of $60-a-barrel by the end of the year. Interestingly, there were two different interpretations of the factors underlying this turn. Some argued that this was evidence of a demand…