CHAPTER 15
Crude Oil Pricing and Industry Investment
The years 2008 and 2009 were unlike any other in the crude oil markets. In July 2008, crude oil prices closed at a historic high of $147 per barrel on the NYMEX. By December 2008, crude oil prices plummeted to near $30 per barrel. Both extremes in crude oil pricing took place within a six-month time frame. This chapter reviews some of the events leading up to the historic market and economic events of the financial crisis and its impact on the crude oil markets. However, record crude oil prices were not without consequences and its effects were amplified by the coincident crises in the global credit markets by late 2008.
This chapter puts some of these historic market events in perspective. ...
