The reason for falling oil prices explained (maye)
Interesting article on Bloomberg today SEE IT HERE
Forum Discussion
LOL! People feel the need to over-complicate everything.......
The price of oil is driven by SUPPLY & DEMAND, plain and simple. Shale oil harvesting has really taken off, causing oil supplies to grow, while demand remains relatively stable.
The Saudi's have no choice but to lower their prices, or they simply won't be able to sell their oil... If Fracking costs break even at around the $80/bbl level, that's where oil will settle +-. As Fracking efficiency improves, it may drop a bit lower. Oil companies will not "over-harvest" via fracking and cause the price to drop below cost.
The price of oil is driven by SUPPLY & DEMAND, plain and simple. Shale oil harvesting has really taken off, causing oil supplies to grow, while demand remains relatively stable.
The Saudi's have no choice but to lower their prices, or they simply won't be able to sell their oil... If Fracking costs break even at around the $80/bbl level, that's where oil will settle +-. As Fracking efficiency improves, it may drop a bit lower. Oil companies will not "over-harvest" via fracking and cause the price to drop below cost.
