Oil prices have been drifting downwards. They fell 2% on November 25 as Brent closed at $83.63 a barrel and WTI sat at $76.28 a barrel, both near or at 10-month lows. The two-month ahead price dipped into contango, indicating current oversupply with near term delivery prices lower than the two-month out price.
Falling oil prices are down to two causes. First, OECD nations look set to stay in or enter recession, in part self-inflicted as Europe in particular seeks to disentangle itself from...