by Pops » Thu 14 Jan 2016, 10:42:00
If equities continue to fall I'd not be surprised for it to go below $30 a ways.
OTOH, a big equities rout and junk bond collapse might put an end to the drillers still hanging on in the US. Or, who knows, lifting the ban might just give them a new lease on life (sorta speak)
Support for oil prices is either the greed of hoping the price rises or the fear that the supply will fall and you (refiner) will be caught short.
All I know is what I read but the 1 year contango is $31 next month vs $38 feb '17. Not the $20 it was in 2009 but still pretty high.
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)