Anyone watched the talking heads at CNBC this morning? They had the CEO from Gulf oil on it and he said he expects oil to go down to 50 PB by the end of they year due to weak demand. What do you guys think?
I would not listen to this guy. There is a "Major" reason oil will not go to $50 bucks.. OPEC is the reason.
These guys still can control the price of oil, maybe not as much as the past, but they still can make a difference. If oil went to $50 their economy would be in ruins, they need the Petro dollars to keep the people their people from an up-rising. It is not going to happen...
Heck, it should be a lot cheaper now, but it isn't.
So it's certainly possible. Even likely, especially if he's basing his conjecture on a severe downturn in the world economy from here that would thus produce the inevitable crash in demand, and if that's what in fact happens.
I mean, it's not like it's an unheard of in this highly cyclical racket.
Fact is, looking back historically (despite the inevitable impulse among the short attention spans, the clueless and the inexperienced to I say "this time it's diff-ernt " [only it never is]) it is a near bet the farm and all the livestock certainty that it will. At some point.
Will make little difference to the deepwater drillers the budget for the deepwater programs were written a long time back two plus years the have very conservative oil prices built in i takes several years to an a deepwater well program the wells can easily take over a year each to drill
Of cousre the monkeys that "value" the stock will drive the price down if oil drops there is no true market now
The Arab countries will never let that happen. They would implode if oil gets below 75. Their CEO (Gulf) must be taking something very strong. With the world economies at a low point and oil over a $100 I would believe oil will go higher as economies get stronger and demand becomes stronger. JMHO BMAN