Would portend more major currency exchange rate adjustments in response.
Oil could drop as low as $20, Goldman says http://t.co/8x6UBK8dVv by @BenSharps and Grant Smith pic.twitter.com/AkCTET2ogM
— BBG Energy News (@BloombergNRG) September 11, 2015Oil could drop as low as $20, Goldman says http://t.co/8x6UBK8dVv by @BenSharps and Grant Smith pic.twitter.com/AkCTET2ogM
— BBG Energy News (@BloombergNRG) September 11, 2015
2 comments:
I am fading this because as you pointed out several days ago, the explosion of dollar based loans in Saudi Arabia is going to force the Saudi's to abandon their war against North American shale oil producers and try to get the price (and dollar revenues) back up. They are dollar "users" and cannot be involved in this low price gambit any longer. This is one war they can't afford to win.
I think price will go below $20 before we see a raise again towards the $50-$60 range, it all depends on how bad the slow down in the global economy is.
This will happen independently of what the Saudis do in the short term, but when they start cutting production we will see that run towards mid-price again as inventories clean and the existing fracking wells are depleted.
If we see a raise towards the 70 range in the middle run while the global economy enters recession-depression again is game on and will be a dangerous situation in the MENA area with some more wards and conflicts re-igniting in a couple years. But I think that wouldn't happen as the Saudis would increase production again.
"Interesting" times indeed...
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