How low will oil go?
Read an interesting piece today
http://www.globalresearch.ca/index.p...t=va&aid=11336
I agree with it though!
How much of the production in the world is profitable at $30/bbl? Lots of operations would have to shut the doors and take supply off the market until it went back up, even Fuad can't pull it up for much less than $25. Still have to work off the glut in Cushing and what's afloat so we could still see down side from here, but how much lower than the absolute price to produce can it go and then for how long? Seems like not much and not long.
I think I agree with aiki.
Oil Break-Even Prices
Nation US$/Barrel
Bahrain 40
Kuwait 17
Saudi Arabia 30
U.A.E. 25
Oman 40
Qatar 30
Canada's oil sands 33
Range bound from $30 - $45 for awhile with a low of $25 to coincide with the next retest of the major index lows.
Just an opinion.
This is the bottom for oil... if it drops below 36 we can see 27 but i dont think that will happen...
short term upside is to 39 then to 40.8