RE:RE:Oil Trader Andurand Says OPEC Cut Likely, $70 in Sight for 2tvstock wrote: IF OPEC dosen't cut after all, they are effectively shooting themseles.
The run up in oil prices above 50 when cut is first announced give many oil producers huge chance to hedge, and most can hang on for maybe one more year .
And US oil produciton can incrsae from here. No way can OPECers can handle this without a huge rise in oil price, say above 60. Anyway should oil just remain sub 50, Venuezuela bankruptcy and chaos is almost a certain. That will end the oil glut and turns to oil deficit .
The country that will really shoot themselves is Iran. Republicans want to prop up prices, and restoring Iran sanctions is the easiest win available to them if OPEC is still acting like a bunch of brats. If Iran doesn't want to play ball and help oil prices with the Saudi's, they're gonna pay for it big time.