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Gold/Mining/Energy : Oil & Gas Price Economics
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To: rajaggs who wrote (322)11/19/2000 10:45:19 AM
From: Ed Ajootian  Read Replies (2) of 350
 
'jaggs,

But I thought I saw some stat that said the amount of oil being produced currently is in excess of the amount of oil being consumed. This would indicate that the demand/supply imbalance is getting smaller and its only a matter of time before oil prices settle back down.

I don't think the correction will happen until the spring, so that's why I think it will get up to $40 this winter.

But its hard to imagine it getting much higher than that, at least for very long, before the additonal production finally creates a glut. And as mentioned previously I'm very leery of the ability of OPEC to cut back production when it really will be needed. They have shown their ineptness at managing production levels on both the downleg and the upswing here, in the last coupla years.
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