Professor articulates oil's balance of supply and demand

As oil continues to come off its summer high of $73 per barrel, oversupply and lack of consumer confidence in the economy appear to be pushing the price further south.  "We are clearly still in a situation where oil prices are low relative to a long-term equilibrium," said Ehud Ronn, director of the Center for Energy Finance Education and Research at The University of Texas at Austin. "The thing that is keeping prices down is that people are uncertain about how strong and consistent this recovery is going to be."

Forbes

Oil prices slide, so will oil profits

July 13

http://www.forbes.com/2009/07/13/earnings-oil-energy-business-energy-oil-earnings.html