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To: wolfman23601
Oil actually has much further to fall to reach equilibrium.

In the short term I agree. But the price of oil is dropping because supply is up (thanks to U.S. production) and demand is down (thanks to the worldwide Obamarecession).

Low priced oil will go a long way towards increasing the worldwide economy. At the same time, U.S. production will drop or at the very least level off, because most of the recent boom in U.S. production is not profitable below $80 a barrel.

That will cause oil to slowly increase in price until a new equilibrium is reached. My guess is that prices will again level off at around $100 a barrel, in about a year or a year and a half.

So I think Pickens timeline is accurate, but I don't think that the Saudis have any incentive to cut their share of the oil production market to get there.

30 posted on 12/03/2014 8:27:56 AM PST by Bubba_Leroy (The Obamanation Continues)
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To: Bubba_Leroy

Last time the economy was booming, oil prices were under $40 per barrel.


35 posted on 12/03/2014 8:36:58 AM PST by wolfman23601
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