As the world begins hesitantly to emerge from this downturn, when and how strongly the recovery will manifest itself is still unknown. There are huge uncertainties remaining.
So why should energy costs be rising again already? Last week’s post about the oil price shock of 2008 described a fall from a $147 peak last summer to $34 in February 2009.
In concluding, I noted that although a $60 oil price looks ‘low’ today, in relation to past prices, it’s still way above the average.
In fact, the oil price has only exceeded $60 for some 15 months across the whole of recorded history. What has happened to keep the oil price high?