Brent crude for November 2016 delivery closed at $46.83 per barrel yesterday.Just a few years ago oil trade well above the $100 mark it seemed that it would stay in that level forever. In fact, pundits were predicting that the price would reach $200/bbl. Since that totally useless forecasts oil prices have plunged dramatically.
According to an article by Paul Hodges at FT beyondbrics, oil prices are headed towards the long-term median price of $23/bbl. The following chart shows the price of crude oil since 1861:
Click to enlarge
Source: You’ve seen the Great Unwinding; get ready for the Great Reckoning, FT beyondbrics
- iPath S&P GSCI Crude Oil TR ETN (OIL)
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