The price of oil is finally rising….it can go significantly higher The US Oil Situation reports from the EIA (US Energy Information Administration) routinely result in sharp shifts in energy prices based on the rise/fall of crude or gasoline inventories versus week-ago levels. For many, this appears a simple relationship, easy to understand and certainly short-term. The US Oil Situation is far less simple when one expands the time horizon to decades, comparing other economic data and adding human behavioral responses to the mix. It is very messy and clearly not so simple, or is it! The long-term perspective invalidates any short-term interpretations. The data tells a complex story of market psychology, adjustments to wide swings in WTI , technological discovery/implementation and a pattern of demand driven consumption. A simple connection to oil prices is not found in supply/demand. First, as extracted from the World Bank data, US Energy […]