Jack Yetiv

Whither Oil Prices?

I agree that (1) the marginal cost of production (which is probably $70-$80/barrell) will set the floor, unless (2) OPEC chooses a different setpoint.

My guess is that OPEC will NOT want oil lower than $100, which means that oil might overshoot to maybe $90, but not much lower.

OPEC can achieve whatever price it wants by cutting the proper amount of production from global supply.

Jack Yetiv