If oil went to $55US/bbl for an extended period (which it wont!Wont even get below $100 imho) It'd be likely that around 2/3rds of the projects on the drawing board today would be mothballed as so many are risked at greater than $75US/bbl. This will threaten future supplies. Therefore the oil price will stay high. The only way to get the oil price down short term is to stop/decrease our reliance on oil because 1)new projects take so long to be developed and 2)Saudi/mid east oil is of a poor quality and most refineries have been designed and built only to handle an amount of it blended with better quality oil. People holding shares in smaller oil/gas companies should be very wary of this.
September will see an escalation of mid-east conflict AND the credit squeeze will get worse, several more US banks will go under, USD to the dogs!
Oil $220US/bbl at the end of December DJIND 9,800 points.
As stated, this is my opinion, dyor. Who really knows!
