The sharp decline in oil prices in recent months has been a major surprise for financial markets, with some suggesting it reflects speculation run wild

The sharp decline in oil prices in recent months has been a major surprise for financial markets, with some suggesting it reflects speculation run wild. In fact, the price decline clearly reflects the development of a short-term fundamental imbalance between supply and demand - and consequent run up in oil inventories. With oil prices now low by historic standards, and restoration of better balanced supply and demand conditions likely in coming months, there's a good chance we've already seen the bottom in oil prices - which is consistent with the moderate rebound in prices already evident in recent weeks. To read my full take on oil prices click the link: (VIEW LINK)