How will this help the Saudi’s? If they cut supplies and prices rise (as they will) this makes fracking again profitable and the supplies will again increase driving down the prices.
The technology of fracking is with us forever and can and will only get more efficient thereby the cost of obtaining the oil.
Barring some world wide catastrophic event we will never again see $100 bbl oil.
Barring some world wide catastrophic event we will never again see $100 bbl oil.
In a sane world you might be correct. But we do have inflation to take into account here. So it’ll be over a $100 per barrel again. It’s just a matter of time.
Saudi’s have been drilling more during this slow down. They are getting better positioned for the future production needs.
Oil’s cost is not necessarily reflective of what it cost to bring out of the ground...more reflective of the value of our currency.
All this imaginary QE money will someday cause inflation - likely when the economy starts to improve, and there’s a demand for goods.
We’ll see $100 oil....we’ll see $150 oil.