The world oil market has undergone dramatic developments over the last 12 months. On January 3, 2008, the price of a barrel of oil passed the $100 mark for the first time. The price continued to rise in the following months and by July 2008 it had risen another 45 percent, briefly reaching more than $145. Soon after, a drastic price correction set in. In the last four months, the price of oil has fallen more than 60 percent and reached levels below $50 — a price last seen in 2005. Part of this price correction is surely the result of the liquidation of speculative long positions and the reduction of risk positions by key market participants in connection with the financial crisis. However, the main culprit is a change in the balance of supply and demand. For example, demand for oil in developed economies has dropped off sharply in
