The theory of “peak oil” may have reached a tipping point. From Boone Pickens to Donald Trump to Goldman Sachs, everyone seems to be bullish (which should set the bubble alarm bells ringing). This newfound consensus has led oil futures to be progressively more expensive each year out…for the first time.
This graph below shows the rapid swing in oil futures prices. Specifically, it shows the difference in oil futures prices versus the current price of oil. The top blue line is May 20th and the dates go down chronologically from there. The current December 2015 oil futures price is almost $10 above today’s price. At the beginning of April, it was well over $10 below.
So was everyone wrong a month ago? Or is everyone wrong now?
From The Oil Drum: