Posted on 11/27/2014 5:11:11 PM PST by blam
Katya Golubkova and Vladimir Soldatkin, Reuters
November 27, 2014
MOSCOW (Reuters) - Russia's most powerful oil official Igor Sechin said in an interview with an Austrian newspaper that oil prices could fall below $60 by mid-way through next year.
Sechin, chief executive of Rosneft, Russia's largest oil producer, also said U.S. oil production would fall after 2025 and that an oil market council should be created to monitor prices, the same day the OPEC cartel met in Vienna and left its output targets unchanged.
"We expect that a fall in the price to $60 and below is possible, but only during the first half, or rather by the end of the first half (of next year)," Sechin told the Die Presse newspaper.
(snip)
(Excerpt) Read more at businessinsider.com ...
When it drops below $60 I’m backing up the truck and buying oil futures.
This is a great development in multiple ways and I thank the Saudis.
Hopefully it will put some nails in a few Saudi coffins.
“Hopefully it will put some nails in a few Saudi coffins.”
It’s the Saudi’s leading this...
As much as some want to make it about Russia, this is all about ISIS. They get their funding from selling oil, and it is a dagger pointed STRAIGHT at Mecca.
Note the discord at the OPEC meeting this week.
They are trying to bury the frackers, but any burying will only be temporary. Their only hope is Obola outlawing fracking. They do own him, after all. There’s a reason he speaks fluent Arabic.
Wrong, as noted in your other thread.
If you did, you will likely lose your entire investment.
The cost of production in the Middle East is very low.
As I stated on another thread, we are getting ready to see a high stakes game of chicken between the US and OPEC/Russia. You correctly noted that Saudi, along with other OPEC members have the advantage of low production costs, but Saudi as an example relies on production for 45% of their GDP. Russia about 15%, and the US??? A whopping 0.9%.
As long as we see some slight incremental subsidization of the dip here, we can bring Russia and the middle east down to it's knees. Russia is already hurting from sanctions, while the Saudi's will choke without the money to maintain their exorbitant standard of living.
It's not going to be fun in the industry for the next few years, but from a long term perspective, we may be seeing the end of the era of being held hostage to foreign oil (permanently).
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.