thegreatyakk

The Good, The Bad, And the Inaccurate Oil Forecasts

>"So what's the outlook? I don't know. We're much closer to an equilibrium >in which the price at which new supplies can be brought to market matches >the price that people are willing to pay. But the market is tremendously >volatile."

Oil sands, and many other innovative production techniques, are not economically viable with oil prices this low ($60/barrel seems to stick in my mind). Anyone care to comment on the effect this will have on production?

One other thing that must be remembered is that in the oil market, unlike some other commodity markets, supply is largely dictated by an international cartel that seeks only one thing: abnormally large profits.