Oil Prices Are Poised on a Political “Knife’s Edge”

Oil prices rose sharply and remained high almost exclusively because of speculation based on geo-political tensions. The Trends editors still forecast a substantial drop in oil prices over the coming year. However, that scenario depends on international efforts to minimize the likelihood of a supply disruption. We’ll explain why the factors driving the price of oil are aligning to create a substantially lower price going forward.

As explained in the June 2006 Trends issue, the price of oil.....