Where do we see the markets go from here? Well I for one think that despite the plunging price of crude oil we are seeing an ongoing recovery. It’s always puzzled me that just how quickly the world has forgotten the Credit Crunch of 07-09 and that any recovery (from what was at the time the end of the financial system) was going to be a decade long.
We are living in a new Imperial Age when the most exciting electoral prospect are Bush vs. Clinton (which Obama was only barely able to budge by 8years). At the end of the day the Central Banks are still continuing with the stimulus plans (especially in the Eurozone and GBP area where the Euro continues to weaken against the USD maybe all the way to parity?)
Other than that where do I actually see oil go? I think we may see it plunge down to $30 even before recovering to the $40-50 format. The commodity story isn’t going to go anywhere and with the plunging price of solar power.
The chart below shows the price of energy sources since the late 1940s. The extreme outlier, of course, is solar, which only recently became an expensive blip in the energy marketplace. It will soon undercut even the cheapest fossil fuels in many regions of the planet, including poorer nations where billion-dollar coal plants aren’t always practical. http://www.bloomberg.com/news/2014-10-29/while-you-were-getting-worked-up-over-oil-prices-this-just-happened-to-solar.html
As he did with oil & gas reserve once again Allah smiles on the Ummah as making it among the sunniest places on earth (of course there are elaborate geopolitical explanations on why that is the case but let’s stick with the religious one for now as Muslims needs all the manna they can get atm).
It seems that the world is going to enter a new systemic bull cycle, low oil prices are going to compete with dropping solar energy prices to industrialise the Rest of the world.
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Brown Pundits Archive
Razib Khan is a Bangladeshi-American geneticist and writer. He is co-founder of Brown Pundits and runs Unsupervised Learning, a Substack on population genetics, evolution, history, and politics with more than 55,000 subscribers, alongside the accompanying podcast. He has blogged at Gene Expression since the early 2000s.
His writing has appeared in The New York Times, The Guardian, National Review, Slate, India Today, Quillette, and UnHerd. He is Director of Operations at FUTO in Austin, Texas, and co-founder of GenRAIT, a life-sciences platform company. Earlier in his career he developed ancestry algorithms for Gene by Gene, the Genographic Project, and Insitome, and was among the first employees at Embark Veterinary.
Born in Dhaka and raised in upstate New York and eastern Oregon, he holds degrees in biochemistry (2000) and biology (2006) from the University of Oregon, and undertook doctoral work in genomics and genetics at UC Davis. He lives in Austin.
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