Turnipseed

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

Oil was definitely overpriced at $147 - political concerns like Iraq/Iran were a factor - maybe speculators too but that's just a guess. So current drop looks like a correction. How low can oil go? Base level would be when significant number of wells get shut in. Judging from production cost of new discoveries, this might be $50 but probably higher. Again, this is mostly a hunch. I'm not sure about peak oil but we have definitely hit the peak of cheap oil. Future discoveries will cost a lot more to produce and $50 is probably on low side. But before we get close to this, demand will pick up and prices will level off and probably go back up. I read somewhere(sorry -don't remember where) the recent drop in gas prices has already started an uptick in useage. So my guess is that oil won't drop more than another 20%. If it drops below $100, I'm loading up the turnip truck.