InvestorQ : How low do you think the price of oil can go globally or is the worst over?
swati Bakhda made post

How low do you think the price of oil can go globally or is the worst over?

Answer
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Dia Deshpande answered.
6 months ago


The good news for oil prices could be that economies may look to start building oil reserves. The price of Brent has dipped below $27/bbl while West Texas oil dipped below the $23/bbl mark. Normally, this is the level when most economies choose to build up their reserves. The bigger worry is that the glut in April could be the largest ever and as storage capacity nears full capacity, the price of oil could fall close to the low of $10/bbl. This was last seen in 1998 before all the oil producers got together to cut supplies and prop up oil prices. It also brought down LTCM!


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6 months ago


The lowest it can go is already what we have now. They will not let it fall below extractions-production costs.