“See UT sunday business section, Dean Calbreath article. Sorry don’t know how to get it tied in here, maybe someone else can help with that.
He says oil should not be over about $ 78 – 80 at present and lots of speculation, hyping, manipulation going on so hedge funds, etc can make money.”
These guys f’n kill me. How do you even price something that is so vital to industrial life, about to be in short supply and has no viable replacement.
The market will price accordingly when we fall off our 85 million bbl per day plateau that we have been for almost 3 years.
Price fluxuations while we are at flat production is merely noise and all these so called “analyists” are doing is creating a narrative. We would be better served if he looked at production rates, new discoveries, declining fields and declining exports rates of oil exporting countries when discussing future prices.
$.15 a cup is way too cheap for a substance that creates so many btus. Starbucks coffee is priced higher than oil by our free market. Lets see which is priced higher when the declines start.
