How Oil Prices WorkAs Marks writes: "In other words, lower oil prices — in and of themselves — eventually make for higher oil prices."
A Warning About Forecasters
In his note, Marks also talks about the error of forecasting, namely that it sticks too close to consensus.
Recent Wall Street research has repeatedly discussed the idea that we are in a "new era" of oil prices, meaning that the days of $100 oil are over and that after prices stabilize oil will be something like $70 or $80 a barrel for the foreseeable future.
But for Marks, this consensus means it is almost certainly wrong.
https://www.businessinsider.com/howard-marks-on-oil-2014-2#ixzz3MMGP8A00