The world price of oil – Brent Crude – fell below $84 per barrel on October 15. This was 26% less than the $115 it had reached in June, just four months before. The rise during the spring had many explanations: global tensions in Ukraine, the South China Sea and especially the Middle East with the emergence of the Islamic State, plus a capital crunch challenging the health of the U.S. shale fracking boom. Then suddenly in June, prices started dropping, reaching levels unseen since 2010 (though still high by historical standards – twice that of 10 years ago). What is going on? Why does the price of oil matter to financial advisors? What might these fluctuations mean to the price and supply of oil for the rest of the decade? Isn’t oil just another commodity? A primer on oil prices Oil is unique. There is a tight […]