Are oil prices still cyclical, or is there something new going on? As the industry digs itself out of the third largest price decline in 30 years, some analysts are putting the blame on a new series of "structural shocks." If you believe the latter reasoning, the possibility that oil prices will remain low for longer periods is quite high. Fans of cyclic pricing, however, expect an imminent rise. Which team has the upper hand? The Oxford Institute for Energy Studies examined the debate, looking at a range of factors including supply side adjustments, OPEC reactions, and potential demand from China and India.
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