What's in store for oil prices?

Oil prices are coming down.

Is it time to rethink the future of oil prices? Since the Asian crisis forced oil down to $10 a barrel in 1997, Asia has set the price of oil. The Financial Times reports that "To guard itself against a sudden oversupply in the market Opec is already producing 500,000 b/d below its quota of 28m b/d. " Hmmmm.... I wish I knew that a month ago.

Barron's reports that the "inverted yield curve signals a slowdown, not inflation."

What about the global yield curves? More on that later.....

In the meantime, the lesson to be learned is that demand from Asia sets the price of oil.