| | | < risk/rewards are unfavorable>
Yes. At any price over $80, there is a lot of oil in the ground, in many nations, which can be very profitably extracted and brought to market. Therefore, these prices cannot last. Oil could peak now, or at $150. I can imagine scenarios where oil goes to $180. But when the inevitable decline happens, it will be abrupt, brutal, and without warning.
From long experience, I get out early, in commodity upcycles. It is a losing game, to try and extract the last bit of possible profit, when the risk/reward is unfavorable. |
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