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the price of oil depends on so many factors. the reason for the projections of $200 oil was on the now faulty premise that economic growth would continue. a $40 oil requires severe economic weakening around the world. although this is possible, only a few are predicting this much economic contraction.
Nov 05 23:32 pm
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All Comments by Steven Hansen »A $40 Bottom in Oil? [View article]
there are other dynamics for oil. for sure it would be an economic stimulus at $40, but it would fuel expansion based on oil - and we would be back to where we are now in a few years as demand would outpace supply.
i think it is in our best interests not to have oil fall further.