Oil going to hit US$20 or US$200?

I think there all many experts mastering in the art of looking into crystal ball and potentially getting noble prize for it. Their only problem is that they are conveniently add in an extra zero or just omitting it.

I don’t think oil producing nations will keen to continue to pump out oil from ground just to sell it below cost for long.

“There is no precedent in fact in the modern era for oil prices to hit a bottom and just go sideways,” he said. “They hit a bottom and [the rebound] is U-shaped or Vshaped. It starts moving up quite quickly.

Oil is still searching for a bottom, and we’re not there yet. Analysts have been one upping each other lately with calls of US$20, US$25, US$30 oil. Mr. Bradford believes the bottom is in the US$30-toUS$40 range because that’s when significant Russian production comes under stress.