The crude oil market is a clear reflection of supply and demand for a major world commodity. Changes in key factors can happen quickly or develop slowly over time, but they eventually are reflected in prices. We now believe the oil market is very close to a global supply/demand balance.

The last four major oil cycles have one thing in common: Falling prices, increasing demand, and pressure on supply. Growing demand and declining supply then tend to push prices higher.

The term Shale Revolution reflects the booming oil production from shale basins in the U.S. The rapid pace of oil output from these fields is spurring growth across the energy industry, providing a wide range of benefits to the U.S. economy and generating potential opportunities for investors.