Many oil companies had trimmed their budgets heading into 2015 to deal with lower oil prices. But the rebound in April and May to $60 per barrel from the mid-$40s suggested that the severe drop was merely temporary.
If the Federal Reserve becomes too accommodative and waits too long to raise interest rates to slow down inflation, then the Federal Reserve might have not only let Mr. Inflation in the door, but they likely just asked him to stay for dinner.
"Globalization creates interlocking fragility, while reducing volatility and giving the appearance of stability. In other words it creates devastating Black Swans. We have never lived before under the threat of a global collapse. Financial institutions have been merging into a smaller number of very large banks. Almost all banks are interrelated. So the financial ecology is swelling into gigantic, incestuous, bureaucratic banks - when one fails, they all fall. The increased concentration among banks seems to have the effect of making financial crisis less likely, but when they happen they are more global in scale and hit us very hard. We have moved from a diversified ecology of small banks, with varied lending policies, to a more homogeneous framework of firms that all resemble one another. True, we now have fewer failures, but when they occur - I shiver at the thought." --- Nassim Taleb, The Black Swan (2007)
Resource Investor speaks to the author of a new book which presents startling arguments about an impending oil crisis. If you're expecting Canadian tar sands or South American shales to fill the gap... forget about it.