For those who wonder where is the actual floor price ... $5 plus transportation costs.
Below that price all producers are paying you to take their oil, and they will not persist in doing that forever.
The price where no producers are making a loss is around $30, and some (most?) companies have hedging in place to tide them over the current strains.
Therefore in a scenario of global over-supply the stable price of oil is currently around $20 ... IMHO (my guess)
Below that price all producers are paying you to take their oil, and they will not persist in doing that forever.
The price where no producers are making a loss is around $30, and some (most?) companies have hedging in place to tide them over the current strains.
Therefore in a scenario of global over-supply the stable price of oil is currently around $20 ... IMHO (my guess)
Carbon-Dioxide: the gas of life!