There is no doubt that the oil price is being driven to current levels by the worldwide economic sentiment. All forms of media are pushing it in our face daily. This really is having a big effect on peoples confidence (even the most optimistic) regardless of the obvious underlining fundamentals.
I have no doubt that energy pricing will be the first in the market to recover. Oil in the US$30 range is totally unrealistic for many producers, and imo this pricing will choke supply and if it goes on too long will have a big negative effect on exploration.
All of this choking will push the price (with some luck) to the US$65-75 range where I hope it will settle. Even though its good for my energy stocks sp, personally I don't want oil at $200 because its effects are far too negative on the economy. A fair price for a vital product is all I would like to see.
OEX Price at posting:
23.8¢ Sentiment: None Disclosure: Not Held
