When Vincent Viola began his career as a trader in 1982 at the New York Mercantile Exchange, news swirled around a global "supply glut" that might destabilize crude oil prices. When we talked with him late last year, there was news of another oil glut. In both scenarios, U.S. production played a key role. Today's version, however, is different for the U.S.
Fracking technology and other advancements have reestablished the U.S. role in the global supply chain, making it the world's top producer earlier this year, according to the Energy Information Administration. That feat was thought impossible not long ago. Viola says the new technology and fundamentals have shifted the way we think about oil markets.
"We used to think of oil and its future price scenarios and risk scenarios in terms of peak supply," Viola, who served as chairman of NYMEX from 2001-2004, told us in an interview. "I think we've shifted because of the advance around those technologies and they're driving the recoverable price of a barrel lower and lower. We really are in a post-peak demand period."
Watch Viola's full remarks on oil's new economics in the video above.
(This article is sponsored and produced by CME Group, which is solely responsible for its content.)