toobad41

Oil Above $50 and Still Has Legs - Cramer

Working Interest Owners of oil production tell me that they have a break-even price of $56 a barrel at the pump. Any price below that is at a loss. So why is oil being produced domestically at a loss? Much of the cash flow was coming in when oil was selling for over $100 a barrel but now that cash flow is ending and the $45 dollar pricing is taken over. The end result is people are losing their jobs, just like any other industry today....to save costs. The current economy is also hurting the oil industry as well. Oil runs civilization. Nothing else comes close. Nothing exists on the horizon to replace oil. Yes the supply is outpacing demand. That is short term contango. It will not last.