Lets talk about oil prices for a moment. Current Oil prices are being driven by a volatile outlook for global demand, but it expects prices to move higher over the long run because long-term fundamentals remain intact.
Fundamentals do drive the market pricing of oil and gas. We are seeing a lot of volatility in the assumption of demand…that has had the volatility effect on prices.
Over the past year, prices have been supported by geopolitical issues related to Libya and more recently Iran and Syria, but global demand now appears to be a driving factor in prices.
The softening of oil prices at the moment–it’s a reflection of geopolitical issues being less dominant and a lower demand outlook coming into the pricing picture.