AndrewBaker

Crudomania Is Over

Nobody knows the future price of anything (within reason), especially oil. One thing I believe is fairly sure though is that it will after this year go to $50 - $70 if only due to taxation, as governments will want that price to encourage alternative energy source research and development. You may have noticed, we are all green now. The underlying barrel price though I think will stay down under $50 for 2009: we are in a recession/depression; demand is down; a lot of supply is floating around in oil tankers (and not because the owners think they'll get a better price next December), and producers can get by nicely thank you on $30 - $40 a barrel, if they can sell it. OPEC say cut production: isn't that what you do with anything if no-one wants to buy it?