SO ... you’re thinking that oil will eventually head back up to the $100 a barrel range?
Most definitely.
Although it's important to note that it is cheap for Saudi Arabia to pump oil at maybe $10 a bbl.
More importantantly is that oil is a state run business. Or maybe a better way to put it is that Saudi Arabia is an oil run state.
Over 60% of SA's GDP comes from oil.
SA has a fairly substantial welfare system and governmental system. Their government NEEDS oil at over $80 bbl to survive.
Secondly, SA needs to be careful who they pi$$ off. Just as SA has a huge % of their GDP from oil, so does Russia. Putin is a dangerous person to pi$$ off. He has more "resources" at his disposal to "influence" people and regions.
My personal feelings about the price of oil, is that we will see SA start to cut back production within the next 6 months.