Could oil prices continue their downward path? A recent report from Credit Suisse predicts that oil could hit $50 per barrel in the case of a severe credit crunch. Looking at a worst-case scenario – namely, a repeat of the slowdown of 2008’s Great Recession precipitated by a crisis of confidence involving Europe - the analysis argues that demand would fall along with trading activity and that any recovery would be “halting fragile and painfully slow.” The report points to the fall in oil prices witnessed in 2008, when Brent prices plunged from a record high level in the space of a few months.
yeah, my mother has been calling this for a while, saying oil prices always have gone way down when her property finally gets a well. They started drilling 17 days ago. ;' /
Watch the foreign markets, especially Europe. We feel the ripples everytime their markets fluctuates. It’s very hard for one to predict the future prices of oil as there exists too many variables. Most of all, don’t worry about it as it
out of your control.
The Saudi's aren't pumping more because they want to, they are pumping more because they need the income, or they would have been pumping more all along when prices were higher. The oil supply is not unlimited, every barrel of oil you sell for $80 is a barrel you can't sell for $100. I had a well come in in 2009 when the price of oil was at it's lowest in awhile and the operator didn't let the well produce much. When the price went up later in the year, the well produced 10 times as much in one month as it had in any of the 8 months previous. I do not expect demand for oil to drop near term as I have seen some suggest. People still need to drive to work, goods still need to be moved. I worked in the trucking industry for years and they have a saying; If you got it, a truck brought it, which is largely true. If we are not at the new floor I think we are close to it. I do not expect $50 oil in the near future.
