from www.oil-price.net: "The price of oil is lower than production costs and new exploration projects are being cancelled. China flush with cash is currently buying all the oil it can get its hands on to pump into its strategic reserves. Once arrogant OPEC countries are willing to sell oil at any price to fund government programs and prevent political instability. One constant however is the depletion of major oil fields, worse than predicted at 9.1% year over year as we close 2008. It's a matter of when not if the economy recovers and when it does, expect a strong bounce back in the price of oil.
WHAT i AM THINKING IS IF BIG OIL AND OPEC GET TOGETHER AND PUT A FLOOR ON OIL, THEY CAN CERTAINLY CONTROL IT. i WILL SHOW YOU HOW. tHE FUTURES MARKET ALWAYS LEADS PRICE. So, let OPEC and big oil co's agree on a price they willl step in and buy oil, no matter what. Lets use a figure of 35 dollars. That means they can actualy profit as the speculators do by making the money on paper instead of just by producing. It woud be an unspoken agreement. A conspiracy. So all shorts would get killed. And as oil rose, they could raise the floor. I think $60 a barrel keeps everyone in business and prevents any investigations and allows more consumer spending. No demand implosion. Oil has t have a bottom! Why? Because like gold, there is an absolute cost to produce it, say 34 dollars a barrell. So if you could buy oil in the futures market cheaper than you culd produce it, why wouldnt you??? Eve without a conspiracy. Oil will never go below cost of production for more tan a day. By the way about 5 years ago it was about 30 bucks t bring a barrel to market. What is the cost now?