But that's the issue. Everyone expects oil will go back to $100 in a year's time when if it's a supply-induced fall, your long term price goes to the marginal production cost which is $60-70. Just look at iron ore
The only reason why oil was at $100 in the first place was because demand has been ahead for supply for the best part of a decade. So until demand storms ahead of supply again I doubt we will see $100 oil any time soon. Note I'm not saying oil will never ever get back to $100, but it's extremely unlikely in even the medium term with all the spare capacity lying around. And I think this is a very defensible argument because you have all these mothballed shale and deep sea fields where a lot of sunk capital has already been invested in them and you can bring them back on whenever oil price edges up
STO Price at posting:
$7.29 Sentiment: Sell Disclosure: Not Held
WPL Price at posting:
$36.35 Sentiment: Sell Disclosure: Not Held
ORG Price at posting:
$11.13 Sentiment: Hold Disclosure: Not Held
