Those who think oil prices are sustainable in the $40s are just as crazy as those who thought oil was worth buying at $150 (Goldman Sachs). If I may introduce the concept of economics and the "invisible hand of the free market": As oil prices decline, fewer pipelines are filled to capacity, rigs are taken offline for maintenance, and overall production decreases, reducing supply and moving prices back up. This is, of course, without the eventual return to global growth vis-a-vis EVERY COUNTRY IN THE WORLD. Ladies and gents, while oil may trade as low as $40 before year's end, don't expect it to stay that way for long...better fill up now.
EP
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1 comment:
Oil is going to zero.
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