At this point all that is gone is the "speculation premium".
Political events can change things rapidly, but with demand leveling out [for the time being] and considerable new production coming on line in the next 3-5 years, the odds are in favor of more reasonable prices.
IMO, OPEC will be doing us a favor if it keeps prices from going into a free fall. $45-50 will provide for a lot of new development outside of OPEC in the long run. Which will not be to their benefit.
there are two huge hits in the gulf of Mexico in the past year. One will be on line in 2007 and the other in 09, add the release of Alaska areas we can drill and you have America getting less from Chavez and less from anyone but Iraq. Price of oil will go down like the price of Nat. Gas...last year 15 now 4.65. Oil will be back at 40 soon. /outsider dreaming speculation
I hope so. My oil sands stock (DWOG) has been getting beat up these last few weeks. If oil goes too low I think that this stock will become worthless.