By David Fessler Today, we’re tackling the all-important question, “Where are oil prices headed in 2020?”
Now, I’m no psychic. But sometimes the answer is basic economics.
The world’s oil markets are dramatically affected by geopolitical events.
But in the absence of geopolitics, the price of oil – like any other commodity – is dependent on supply and demand.
My friend Rick Rule, CEO of Sprott U.S. Holdings, famously says, “The cure for low prices is low prices. And the cure for high prices is high prices.”
What does he really mean here?
When oil prices are low, producers cut back on production. Some even go bankrupt.
Those actions reduce …read more
