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Old Oct 20, 08, 10:40 pm
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Join Date: Apr 2006
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Originally Posted by newyorkgeorge View Post
Also, OPEC is looking at cutting production to get prices stable and there are a number of unfriendly US oil producing countries (Iran, Venezuela) that want to get oil back to $100.
And it's not going to happen! For oil and its downstream products price is highly inelastic; refineries were at capacity. So, when the quantity demanded is strong, the price shoots up; as the global economy weakens, it's tough times for the industry and OPEC won't be able to stop it. There's a good chance that we'll see a price of $30 to $50 in the next few months.
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