I am outraged at this blatant manipulation of the oil market - the price has fallen over 75% in a mere 6 months, clearly this cannot be because of underlying supply & demand factors alone, so it must be speculation holding the price artificially low. Why isn't any government holding hearings to investigate this shocking state of affairs? Workers on the oil patch are being victimised by a cabal of the auto-lobby and gas-guzzling SUV owners who clearly have a vested interest in pushing the price below fair value. With oil so far below the cost of production, who can anyone justify this in terms of underlying supply & demand? It's gotta be a bunch of gamblers and manipulators doing all this.
Nice to be short oil at the moment We will see 30 before end of month just as a self-fulfilling event.
It will get down to it's low, which, IIRC, was $15 in 2002? I expect this to happen within the next 3-6 months. Denton
Oh no the blame game again. Blame the speculators for high oil - now blame the speculators for low oil. Haven't you learnt yet that the speculator premium has always been factored into the price?
On a more serious note, once Chavez goes bust (2009 budget has been made with oil prices at $60/barrel for their more heavier crude selling at half that price now) and perhaps regime changed in Iran, no more cheap oil.
Averge price to extract a barrel of oil world wide is under $15 a barrel. In Saudi Arabia is less then $5 and Iraq its around $1 a barrel. Oil shouldn't cost more then $25 a barrel. John
Its so vague to say the "average" price to extract oil... Shallow wells in the middle east and gulf coast may be under 20/bbl... But deep shale, like in the bakken play in MT and ND it is between 35-60/bbl. It varies greatly.