Oil - How low can it go?

[OwlHoot]

The interesting point is that many of them are so heavily leveraged/endebted, that the banks may well think twice about funding them as and when the price does increase - once bitten, twice shy. And they *will* be bitten - good WSJ article on the subject here. ..

I believe the US FED has had a word with banks, urging (or even ordering) them to show forbearance and not call in loans to fracking companies.

[BrilloPad]

AEP calls bottom of market by predicting further collapse

No end to oil rout as Saudi Arabia plays tough - Telegraph


FTSE 100 opens sharply higher as oil prices rebound - live - Telegraph

[DimPrawn]

With Diesel and Petrol now below £1 @ litre it's a certainty that the Fuel duty will be raised in the next budget

There's talk in the govt about targetting low emissions vehicles. The logic is that the some very expensive cars are now low emissions and are not paying their "fair" share of road tax.

So expect even more meddling, based on purchase price and emissions, so low emissions cars that cost a few bob pay high road tax.

I wish the govt would just FOAD.

[DimPrawn]

How low?

How about paid to take oil.

Oil Sold for -$0.50 per Barrel. A Negative Price! | OilPrice.com

[The Janner Miss Tanner]

I've just bought 1000 litres of heating oil & I was absolutely gobsmacked when the agent on the phone told me the price - £278!

It used to be the case that I'd have to steel myself with a stiff drink and make sure I was sitting down before making the call to the oil depot because, not even 2 years ago, I was paying £345 for half that amount.

What's not to like about low oil prices! Wouldn't mind betting this is doing wonders for the oil fired aga market.

[PurpleGorilla]

Surely if they were hurting price-wise they'd close the taps a bit to try to increase it? Of course with the Iran embargo ending that might not matter, but I can't imagine the Saudis aren't contributing a significant amount of the world's oil still.

Generally there are lower costs with slowed production rather than stopped/started production.

[PurpleGorilla]

Hence why the status quo must suit them for some reason. Analysis I've read suggested it was short term pain in exhange for trying to put competitors out of business. It's all fun and games until the wells run dry anyway. Do the gulf states have a plan b for that?

I think that's bull tulip. There is global over supply. Economies are slowing. Demand is falling.

[jamesbrown]

Not normally a fan of AEP, but since this mainly consists of quotes from people that know what they're talking about...

[PurpleGorilla]

$20 is probably the bottom, can't see it going lower than that.

[AtW]

Not normally a fan of AEP, but since this mainly consists of quotes from people that know what they're talking about...

Ambrose Evans-Pritchard keeps posting DOOM tulipe, that's his speciality

Once Iran start pumping oil will be 15-25 range, high volatility.

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