Crude super cycle end

May 23, Fed Chairman Ben Bernanke (Ben Bernanke) in the U.S. Congress Joint Economic Committee was specifically asked if and when it will resume quantitative easing (QE), he said the Fed will start to decrease in the coming months buy programs.Frac sand On the same day the Fed announced the latest meeting showed the Fed is also intense internal debate when it should recover the loose.
According to Buffett previous warning, first issued once the Fed to stop the debt purchase, or start to reduce the balance sheet, in terms of liquidity would be a danger signal.
With the sound of "shots", the world's major stock markets, commodity markets, "shot", fell sharply. Among them, the New York Mercantile Exchange, light sweet crude for July delivery futures on London's ICE Futures Europe exchange in July Brent crude futures for delivery in price declines, respectively, 2% and 1.3%. And since February 2013, the international oil prices continued to fall, Brent oil prices have fallen by 15%.
International oil prices in July 2008 reached 147 U.S. dollars / barrel record high after several twists and turns, ups and downs, both in the 2009 financial crisis led to $ 46 a barrel diving, there are also rebounded in 2012 to $ 128 a barrel. But anyway, before 2008,Proppant international oil prices continued to rise in recent years could not reproduce unilateral.
"2013 will sound the death knell commodity super cycle and to promote the market into the next decade." May 20, in the latest issue Citibank commodities research report, China's economic growth slowed, stocks and interactive commodities weakening U.S. dollar and other factors, marked "commodity super cycle end."
Relative to other commodities, crude oil in addition to the factors mentioned above, a new industrial revolution and energy supply - shale oil, electric cars will accelerate the development of technologies such as the end of its extended period.
On the supply side, the U.S. shale oil and  shale gas  technology development is brewing a new revolution in energy supply. International Energy Agency (IEA) predicted the U.S. will become the world's largest oil-producing countries and to achieve a net exporter of oil, which in turn achieve energy independence. On the demand side, the financial crisis, the world's major developed economies is still not back to normal recovery track, China and other emerging market countries, economic growth has slowed down than before the crisis. In addition to Tesla (Tesla) as the representative of electric cars and other technological advances, then make a structural decline in demand for oil.
Supply and demand is likely to increase in the relative weakness in the background, even in the face of international crude oil prices tend to fluctuate more risk events, and in the long term will be entering a downward cycle.