False dawn for oil
EVs, fuel-economy standards and perceptions of supply abundance are not about to end oil-market volatility
Oil industry leaders, investors and government officials contemplating medium-term (say five-year-forecast) oil prices should be wary of the words "new normal". Consensus sees shale and electric vehicles (EVs) indefinitely penning crude oil prices in the $40-$60 range that has held since early 2015, with the exception of a single sharp decline below $30 in early 2016. We contend that the oil market remains firmly in a "boom-bust" era, characterised by large structural imbalances, and the absence of an effective swing producer, with no end in sight. Oil's recent relatively tight range is no more a new normal than the prior "new normal" interlude around $100 was from 2010-13. Medium term, expe
Also in this section
4 December 2025
Time is running out for Lukoil and Rosneft to divest international assets that will be mostly rendered useless to them when the US sanctions deadline arrives in mid-December
3 December 2025
Aramco’s pursuit of $30b in US gas partnerships marks a strategic pivot. The US gains capital and certainty; Saudi Arabia gains access, flexibility and a new export future
2 December 2025
The interplay between OPEC+, China and the US will define oil markets throughout 2026
1 December 2025
The North African producer’s first bidding round in almost two decades is an important milestone but the recent extension suggests a degree of trepidation
