How low do you think oil prices will go

Question

Looks like the greedy folks out there are getting scared. What do you think?

Answer 1

In the last two busts in the 80s and the 90s it dropped 65 and 55 percent respectively from its highs.  And I expect this one to be worse because the boom was higher.  So the low will be $40-50.  I dont expect anyone who has never seen a horse's head (or knows what that is) to believe that.  But I think thats what's going to happen.

Answer 2

I think we'll see a price between $100 - $110 before it bottoms. However, I don't forecast show much as watch price action in the market. When a market has proved it has turned via strong price action it is safe to say it has seen bottom, and you can trade or invest accordingly. My blog covers timing of the oil markets as well as stocks, and commodities if you are interested. There are a few things that I look for in a market before I say it has turned. My blog has just started, so I need to fill out the content with lot's of posts, but I have a page with trading signals.

http://tradelines-swingtrades.com/

Answer 3

i agree exactly with meton. i'm a hard money person myself, and at these prices, i'd be buying even more oil and gold. there are always bumps along the way, but the general trend is up. this is a secular bull market that isn't going to end until countries like China finish their industrialization and revalue their currency. the US Dollar is finished...

Answer 4

Sorry, but with deeper wells and more exploration, this is about the lowest anyone will ever see again.

Answer 5

low enough to falsely make people feel secure and then they will rise again.

Answer 6

forever,its magical stuff. if you where selling a product that people would continue to buy whatever the cost you also would raise the price when you wanted.(or should i say "extract the urine").

Answer 7

The price of oil hasn't changed at all. The perceived value of the US dollar has. All OPEC countries gauge the price of oil on the US dollar. Due to the fact that we are currently in massive debt (if you include promises such as social security, it is figured at 50 trillion), providing foreign aid to many countries, and fighting wars for other countries, our dollar's value has tanked. If you look at the price of gold compared to the price of oil, they have both remained flat.

There is some minor fluctuations due to prospective bidding (people usually buy oil that they wont have for several months, often up to 6), but the average price has remained a constant when looked at with real money (gold) and not a fiat currency (US dollars)

Answer 8

I have to agree. They are going to make us all think that it's okay to take a small vacation before summer is over and then bam! prices will sky rocket right at the time we have to start school shopping for the kids!  

Answer 9

I think you're mislead or don't understand the market. Just because one invests in oil or invests at all and makes money doesn't mean they're greedy. Just prudent and educated. A wise investor can make money no matter what the stock/market does. I've made money when oil was going up in price and I've enjoyed even larger profits as it's been going down. It's all timing. Timing is everything.

If the elected officials would listen to the American majority as they are supposed to do, we could knock the price of oil back to $60-$80 a barrel.