Jason Bardoff, Director of Columbia University Centre on Global energy Policy concluded that the oil market is behaving like a normal market. Supply for example a year ago in Saudi Arabia refused to allow OPEC to try to raise prices by pumping less crude, they hoped that a low price would drive competitors out of business.The geopolitical tensions that sometimes play havoc with oil prices has been absent since OPEC has more or less abandoned its quotas. Demand is also behaving normal. Oil prices is boosting consumption to a degree. Drivers are opting for larger more full guzzling vehicles for SUVs in America and China.One big question is if they quickly ramp up production if oil prices spike. They think it wont happen so quick because the banks may be reluctant to fund more of their wells causing constant production.
http://www.economist.com/news/finance/21678198-once-prices-are-responding-supply-and-demand-not-opec-why-market
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