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Middle east oil geopolitics, page-178

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sexythang

4,309 Posts.

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22/02/16

17:00

Post #: 17084821
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Originally posted by bystander01 ↑

tui, your 9 points are very important to everyone except the shortest timeframe traders.
In combination they result in oil production not keeping up with demand as soon as the end of this year, regardless of any OPEC freeze or cut.
Low prices will kill the US shale producers, with many defaulting on loans. These resources will be unavailable to the market when prices pick back up - who will finance a shale well when the Saudis can drop prices again at will.
For this reason alone, oil will be in the $50-$70bbl range by the end of the year.

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Some US shalers are profitable at 20-30. Question is we don't know how much small companies they are going to swallow up.

SXY Price at posting: 15.5¢ Sentiment: Buy Disclosure: Not Held
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