The oil bubble bursts – for now

Oil prices look set to fall a long way over the next year. But the long-term bull case remains intact. Cris Sholto Heaton explains why, and looks at the likely impact of cheaper oil on investments.

Up until recently, oil has been about the one market in the world that investors could rely on to go up. But now even the price of black gold is tumbling. After running up to record highs of $147 a barrel, crude has dropped sharply, slipping 15% in little over a week.

A big move like that should be no surprise oil is a volatile market at any time. But in recent months, surprises have been almost exclusively on the upside. Now investors who've watched its seemingly unstoppable surge for weeks are wondering if this is the end of the bull run. Could oil be poised for a sharp correction?

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Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.