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  • Oil Breaks Down Again [View article]
    Russia just reported another dismal quarter for oil production. Non-OPEC oil supplies this year will be their lowest in almost 20 years. US gasoline inventories are at a 40 year low. Simply put, OPEC has drawn a line in the sand. $90 is the new "support level" or floor that they will enforce. Many Saudis have said publicly that billions of dollars in CAPEX projects underway are only economically viable with oil at $90 or above. So you can expect another production cut at the December cartel meeting or sooner. We will not see a sustained move below $90. Oil futures have moved from contango to backwardation which is bullish for oil prices.
    Oct 07 10:52 am |Rating: 0 0
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