By Adrienne Blume
HOUSTON -- During a breakfast presentation of The Economist's 30th global forecast
issue on December 9, Executive Editor of The
Economist, Daniel Franklin, invited Spencer Abraham, Chairman and CEO of
The Abraham Group LLC and former US energy secretary under George Bush, to
discuss the energy markets in 2016.
With the recent OPEC decision to leave oil production levels
unchanged and crude oil prices hovering below $40/bbl, Franklin posed the
question: "What can we expect for the year ahead in energy?"
Abraham (pictured right) noted that, with regard to the cyclical nature of
energy markets and oil prices, it is interesting how the US perception of
commodity markets has changed over the past year. The consensus used to be that
low commodity prices were a good thing for the economy, but perception has
shifted in the opposite direction since oil prices began falling in 2014.