A new US Energy Information Administration (EIA) report
highlighted a positive trend unfolding within the global energy
market. The rise in US crude oil production has greatly
contributed to stabilizing crude oil prices. As shown in
Fig. 1, the annual averaged prices for West
Texas Intermediate (WTI) and North Sea Brent crudes have been
on a roller coaster of highs and lows. It is very
easy to identify the recessions in Fig. 1,
when demand and oil prices dropped.
Fig. 1. Average annual spot
for Brent and WTI crudes, 20022013.