JP Morgan’s recent prediction that oil prices would hit $190 has reignited a conversation about how high the looming supply crunch will send oil. The U.S. shale boom transformed the oil market forever, providing markets with a rapid way to increase production and deal with demand if prices break above $80. There is also a long-term demand decline for markets to deal with which make a price spike above $100 unlikely For more than a week now, oil prices have consolidated around the psychologically important $40/barrel level as the worst of the recent oil price crash appears to be in the rearview mirror. So far, OPEC+ production cuts appear to be going well with recalcitrant producers such as Iraq, Kazakhstan, Azerbaijan, Nigeria, and Angola toeing the line and raising hopes that the markets have been effectively rebalanced. Still, some oil punters believe that this is just the beginning and […]