Back in 2008 crude oil fundamentals were as much, if not more, of a factor leading to higher oil prices as geopolitical risk. The world was experiencing a global boom phase then. We now know that boom would come to a rather abrupt end.
This time the global economy is far from anything representing boom times, even though demand for commodities is relatively strong. OPEC, admittedly an oil cartel, insists that supply is sufficient to meet global demand and further production is not necessary at this point … and that the world economy can sustain growth with oil prices at $100 per barrel. Whether or not OPEC is lying through their teeth remains to be seen. But can the world economy sustain itself at $110 per barrel? What about $120 or $140?