Perspectives Blog

Oil at $70 — How will the markets rebalance?

Jonathan Mogil, Portfolio Manager and Senior Analyst | December 8, 2014

Lower oil prices should translate into higher demand as a result of cheaper petroleum prices and through higher global GDP growth, which in turn drives oil demand. While there are several factors that could serve to offset this higher demand, we should see some additional demand as a result of lower prices. The entrance of U.S. shale could lead to a smoother and faster self-balancing mechanism, but in the short term, the absence of OPEC will ma…

Rebalancing the U.S. economy

Marie M. Schofield, CFA, Chief Economist and Senior Portfolio Manager | January 13, 2014

…domestic energy production and the diminishing dependency on oil imports which materially narrow trade deficits. Petroleum imports fell 6% (the lowest level since 1996), and petroleum exports rose 4% (to record highs) adjusted for inflation. The shale revolution together with increased energy efficiency has put the U.S. on the path toward energy independence, which can lower domestic energy costs and boost production onshore. Finally, one area th…