RE:RE:The Low Oil Price Has A Domino Effect to the US-BanksNow thats something I would disagree with, dig a little more, you will find that the bigger picture plays for lower oil prices. However, I personally dont think this pricing will persist for more than a year or so. The Saudis are happy with 75 dollar a barrel, at least in terms of their budgetary needs.
OPEC has always said that they will abide by a production cut, but do the research and see how many times production cuts have actually transpired. Back to basics, its all about what the Saudis want to do. If they perceive the US shale drillers as significant long term competition, then perhaps we will see some aggressive pricing on their part.. Im thinking anyway its sliced, we likely see 75 dollars for the next few quarters. Chinas demand is ok, but will it increase.. Cure for higher prices is higher prices, so we work through that now.