Seeking Alpha
All posts from Seeking Alpha
Seeking Alpha in Seeking Alpha - Read, Decide, Invest.,

When Will Oil And Energy Stocks Bounce Back? Maybe Not So Soon

We can say one sure thing about energy price -- -they're unpredictable. While pundits were calling $100 per barrel the new normal, crude oil prices plunged 50% over the course of a few months during the second half of 2014, and WTI broke below $50 per barrel one month ago.

This precipitous drop in energy prices was a bombshell, and there is much speculation about the potential for further decline, the duration of decline, and energy sector prospects in general (or more talks about when they will bounce back). Due to this, I thought it would be interesting to attempt to glean some insight from past experiences of oil price collapses.

I examined historical crude oil prices back to 1859, and of the 31 occasions of oil price crashes, the current case shares the most similarities with the experience of the 1980s. What happened in the aftermath of that 1980s… Read More …