Old Project Avalon Forum (ARCHIVE) - View Single Post - Analyst sees oil dropping to $50 on global economic slowdown

Richard T · 10-08-2008, 08:07 PM

Basket price is not production cost. But what the market pays for oil could not go below cost. If that happened, producers would reduce their production and price would go straight up.

If there is something I am sure of is that the oil cartels are not in it to lose money.

10-08-2008, 08:07 PM	#8
Richard T Avalon Senior Member Join Date: Sep 2008 Posts: 179	Re: Analyst sees oil dropping to $50 on global economic slowdown Basket price is not production cost. But what the market pays for oil could not go below cost. If that happened, producers would reduce their production and price would go straight up. If there is something I am sure of is that the oil cartels are not in it to lose money.