Well the massive swings seem to be over for now at least. However there is a slow downward trend. WTI will probably stay below $50 for most of March and April in my opinion. What do you think will happen with oil this summer?
It is basically Fed watch time. My opinion is that the price of oil for the next few months is going to be dictated on the data coming out regarding inflation. Good jobs numbers, low oil prices.... good consumer spending.. low oil prices.. mainly because we seem to be on the bubble of when the Fed is going to boost interest rates...too much good economic news will lead people to believe the fed will raise rates sooner rather than later. I think oil is where it should be.. $45-60 per barrel for the next few years.
$45 a barrel is too low as that is below the break even point for new oil production in most parts of the world. The current wells will surely keep pumping at those prices but new projects will keep getting pushed back or cancelled completely if oil stays that low. And since wells aren't eternal, no new ones being drilled would be very bad for supply in the long run. I'd say about $55-$60 per barrel on 1st of August... and $60 to $70 being the sustainable long term range.
Yes, but the current prices hardly have something to do with production costs I am guessing, political battles are between those prices and they can pull the price up again when they consider convenient.
I think prices will start to climb again this summer, and I have a real bad feeling gas prices will skyrocket as well. I think by late April we're going to see prices quite a bit higher.
Yes I too feel that this is more political than anything else. But the thing is, no matter what the politicians say they cannot shit oil. Companies WILL NOT start projects that they don't estimate to be profitable so the overall production will start decreasing if these prices go on long enough.
Oil prices will hit $60 or so a barrel by September because should many companies cut production, the Saudi's could raise their production and also sell their oil at slightly higher prices but not high enough for others [non-Saudi oil companies] to make decent profits from their sales.
Can you also give me the Megamillions or Powerball numbers the next time one of them hits a half a billion or so?
It's merely speculation. While it's impossible to predict with certainty that this or that will be the price at in September, December, etc, at some some indefinite time in future prices will start to go up. Some analysts predict that by the end of 2016 the price would hit $100 a barrel. It remains to be seen if these predictions ae accurate or not.
$100 a barrel no wonder why there are lots of folks after the oil. If it does hit that price then I can see the gas going up again. So what is the price now for oil?
