Posted on 02/03/2015 1:00:16 PM PST by tcrlaf
Right now the oil market is totally focused on finding a bottom for oil prices. However, according to OPEC's Secretary-General Abdulla al-Badri we've already hit bottom.
Not only that, but he sees a real possibility that oil prices could explode higher to upwards of $200 per barrel in the future. He's far from the only one that sees a return of triple-digit oil prices.
Finding a bottom: According to recent comments by the Secretary-General when he was in London, the oil market doesn't need to look for oil prices to bottom as the market has already bottomed. Instead, he offered quite bullish comments by saying, "Now the prices are around $45-$55, and I think maybe they [have] reached the bottom and we [will] see some rebound very soon."
Normally that type of remark would be just another layer of noise, but this is coming from OPEC's Secretary-General so it comes with a lot of weight behind it.
(Excerpt) Read more at money.cnn.com ...
Won’t happen. When oil prices go up, the frackers work faster and low production, high cost wells will open back up until the market is once again saturated.
Saudi Arabia Wahhabists should be shot. Oil wells overtaken. Tankers safety a given, with prejudice.
some context of the comment:
http://www.reuters.com/article/2015/01/26/us-opec-badri-idUSKBN0KZ1F320150126
“Suppose we cut production, and then we’ll have spare capacity,” he said. “Producers, when they have excess capacity, they will not invest.
“If they do not invest there will be no more supply, if there is no more supply there will be a shortage in the market after three-four years and the price will go up and we’ll see a repetition of 2008.”
“Maybe we will go to $200 if there is a real shortage of supply because of the lack of investment,” Badri said.
The price of oil may go up, or it might go down.
We have the stock markets and futures exchanges, where you can place your bets!
the thought goes through my mind - were the Steelworker heads told to strike by the WH to get the oil prices back up?? After all, during Obama’s first campaign he made it clear one of his goal’s was to get the price at the pump up to $5 p/gal to create an alternative energy demand. Of course, getting the price up is a must to maintain the Arab luxury lifestyle and pay for their battlefield butchers. Again, Obama clearly wants to help his brothers in everyway he can without revealing his relationship with the ME..
There are two oil wells scheduled to be drilled on our land in West Texas, but the rigs have been laid down. When the price comes back to $65, they’ll start drilling and see what they find. I don’t see it going to $200, because every oil driller will be busy making up for lost time long before that point. There is plenty of oil to find in the USA.
OPEC with the help of American Greenies will do their best to make it happen.
If the refinery is not running, the demand for oil goes down, driving the price down.
Gasoline price may rise if the stocks get drawn down, but oil would drift down if demand was lowered enough.
All that said, only one refinery was closed, and if was half shut down due to other work already.
http://www.freerepublic.com/focus/news/3253488/posts?page=2#2
Oh boy! Get ready for $7 a gallon gas!
T. Boone Pickens recently predicted a rebound in oil prices to $100 a barrel within the next 12 to 18 months. He’s worked in the oil industry his entire life so his predictions can’t be easily dismissed. Its a complex industry with long lead times for production, not to mention myriad geopolitical forces at work, so I wouldn’t say that a price rise won’t happen. Just my opinion.
Which is why I no longer play in the energy sector.
Makes me wonder what Mr. T. Boone Pickens is doing right now. If he is buying up those small rigs.. well he has a history of destroying rivals.
TBoone Pickets has had his ass handed to him investing in windmills. He’s like an old bust out stock picker who time has passed by.
I worked with a sales rep who would get called in for refinery duty when they were out on strike. This works as long as maintenance can be deferred. He liked it as he made big $$$ while doing so.
This mad gamesmanship with my money really honks me off.
Hopefully this will work and the Fremen will be put out of business:
http://www.lockheedmartin.com/us/products/compact-fusion.html
Notice it’s on their Products Page!
I have no doubts that they will rise again, but I doubt it will get anywhere near $200 bbl. Or at least I hope not.
The only refinery shut down with the Strike is Tesoro’s Golden Eagle Refinery at Martinez near San Francisco.
Poor Pickens. He’s only worth about $1 billion. I hope he manages to somehow scrape by for the rest of his life. Lots of successful people in business make and lose fortunes, but when you’ve got that much money lying around you’re not exactly a loser.
Back to $200 a barrel? Has it ever been that high to begin with?
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