“if doomsday scenarios of $20 or even $10 oil play out” –
Is there any way to calculate the “actual value” of a barrel of oil? Tricky, for sure; but does anyone try?
It smells to me like the current race to the bottom in oil prices has no visible bottom- all the market forces are forcing it lower- all the producers are desperate for ANY cash flow now, and are already selling below their cost of production in many if not most cases.
Somewhere down there; doesn’t there have to be a price where production collapses to the point where buyers, who need to power their lawn mowers, will actually go out and look for oil to buy- where is that price? $10 doesn’t look at all unlikely, today.
Sorry, the comment form is closed at this time.