The oil price collapse is not over yet. It is more likely that Brent price could fall back into the mid-$50 range than that it will continue to rise toward $70 per barrel. That is because oil prices have risen based on sentiment alone. The fundamentals of supply and demand indicate a dismal reality: oil prices will fall and may fall hard in the near term. Our present situation is like that of the cartoon character Wile E. Coyote. He routinely ran off of a cliff and as long as he didn’t look down, everything was fine. But as soon as he looked down and saw that there was no ground beneath him, he fell. Hope and momentum cannot overcome gravity. Figure 1. Wile E. Coyote cartoons. Sources: The Braiser, Dubsisms and Forbes. Neither can ignoring the data. When I look down from $60 WTI and almost $68 Brent, I see no […]