Don't be surprised if oil drops as low as $40 barrel. It's all about supply and demand. The oil price is in free fall and the bottom hasn't hit yet.
the supply has outstripped demand so the price has dropped and it's certainly helped that the Saudis have refused to cut production.
The US has pretty much doubled its production in around 8 yrs and could double again in the next 7.
The thing is, this could spell trouble for some countries who are heavily in debt and depend on oil revenues to pay back that debt.
venezuela is one of them. 2015 could be an interesting year. If you have investments especially in stocks I think you should be ready for a rocky ride. I'm certainly watching carefully. Good luck.
Crude oil is $86 today.... beginning of the end?
Discussion in 'Oilfield Trucking Forum' started by kogaFX, Oct 9, 2014.
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http://www.zerohedge.com/news/2014-...e-after-arab-emirates-hint-40-oil-coming-next
As it is, the small uptick in oversupply doesn't nearly correlate to the drastic drop in pricing... the market is going to self-correct long before all the rigs here get shuttered. -
Yeah...it's really, REALLY complicated.
Anyone who couldn't see this one coming must have had their head buried...somewhere.TLeaHeart Thanks this. -
TLeaHeart and RocketmAAn Thank this.
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I doubt this is about supply and demand, just like precious metal, I suspect the price of oil can be rigged.
Sure, I know all about theoretical free markets, but I also know about predatory pricing.
The fact that this major drop in prices coincides with the Ukraine/Crimea struggles and economic sanctions against Russia, I suspect the fall in prices is designed to damage Russia. -
The Ruble is at a record low-
Maybe I should actually buy some this time. If I had bought back when Russia was in their massive economic crisis like I planned to, I wouldn't have had to work. Instead, my mother "managed" my account, and day-traded all my money away on AOL like I told her not to do. -
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