The world has had a great reprieve, with literally the collapse of the oil price per barrel of crude, near the end of 2014. The main question now is ,is this a temporary state or will the oil price rebound?
I ascribe to the theory that it will stay low for a longer period that might be at least a number of years, before a slow recovery takes place.
Forty years ago the Middle-East supplied almost 85% of the worlds supply cheaply around less than 22 US Dollars per barrel. What a shock when the Arabs decided to use oil as a weapon against the Western Worlds support of Israel. They cut the supply off completely resulting the price rising fast and rationing being imposed in many countries. The price shot up to well above 100 US Dollars per barrel . Since then the world has striven to lessen its reliance on this source for power generation.
Slowly but surely other sources of petroleum supply have been developed such as tar sands in North America ,also fracking, shale oil and deep sea drilling in places other than the Middle East.
Added to this mix the world has become more aware of pollution effecting the quality of life from fossil fuels. Now solar power, nuclear power and still in its infancy but quickly gaining ground are fuel cells, wind and sea movements are becoming competing sources of energy.
All this is giving a new spurt to the world and as a lower petroleum price is going to have a wonderful knock on effect to the price of transport and constant increases of price.
I really can not see the stock market having a major crash during the next couple of years. Of course markets some times become over heated and then sudden retreats in price of around 20% or slightly more can occur, but generally the markets recover from these blips as can be seen on a graph of main markets over the last hundred years.
SEE NAOMI'S COMMENT ON 5.1.2015 http://2010plusstocktrends.blogspot.com
