There we go, oil halved in a tad over 6 months, to a 5-year low. Trouble in Libya? Pphh!
Tell you something else that has halved: the supposed value of capacity in the UK electricity market. Back when the government launched the recent Capacity Market auction for 2018-19 power generation capacity guarantees, they and their expensive advisers 'estimated' that the clearing price would be £39/kW. Meaning they'd need to offer that amount annually to power plant owners in order to get them to guarantee to be available on demand in that time period, in the desired amount. Pretty much all the idiot energy market forecasters went along with this - indeed, several 'calculated' it would be even higher.
But the auction, which happened in the week before Xmas, cleared at ... £19.40/kW. Hah! There are so many amusing aspects of this, I expect we shall return to it in 2015.
For now, back to the two price-halvings. Are they related ? Not by cause-and-effect, that's for sure. Rather, they are two manifestations of the same phenomenon: economists don't know what the hell they are talking about. And yet somehow they have salaries and positions of, ahem, power.
To energy consumers everywhere - a Happy New Year !