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Originally Posted by barn32
When oil bottomed around $26, all of the pundits were saying $20 oil is almost a certainty.
I think that scared a lot of people off.
My personal low was around $25, but I failed to buy as well.
What do I know from oil?
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The price of oil has been artificially dampened so that the cartel can re-corner the market again. There are two outcomes here that stem from that attempt.
1. The cartel pumps up production and
succeeds in driving out the fracking and smaller players by having extended low priced oil. Longer term, production would be cut back and oil prices would zoom.
2. The cartel pumps up production and
fails in driving out the fracking and smaller players by having extended low priced oil. Longer term, production would be cut back and oil prices would zoom.
The end game for oil prices longer term is the same without regard to whether the cartel succeeds or not. The cartel countries are losing a lot of potential profits at these low prices, so artificially low prices cannot be sustained forever (more than 2-3 years), and when the price got to $26-27 a bbl, that was my thought. I still think oil is cheap compared to what it will be in 2-3 more years. I believe it will reach $100/bbl again in that time.
