Marcus Aurelius

Forget $100 a Barrel - Oil Will Plummet to $30

Vindication is great, isn't Jason? Good call.

Forget $100 a Barrel - Oil Will Plummet to $30

Yeah the report abuse link is sorely needed here and it isn't for Jason's article its for the thoughtless abusive comments.

Cam Hui, as oil was at its top wrote an article here titled Oil $100 before $150, but $200 before $50. At the time, oil was hitting $147.00/barrel.

I am not as optimistic (I don't have any position other tahn as a consumer of its derivatives) as Jason is, I don't think oil will be at $30.00/barrel ever again but I believe it has more downside to it.

Fundamentally, Jason is correct, the oil producers do not have free reign to raise prices. Raise prices too much and you spur innovation to find other energy sources. Demand is being destroyed for a number of reasons. Many people say it is because the economy is tanking, but what causes what? I suspect high energy prices are causing the economy to tank rather than the economy causing oil prices to tank.