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"Oil should be around $10 a barrel"

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August 30, 2010 – Comments (9) | RELATED TICKERS: OIL , USO , RSX

http://finance.yahoo.com/news/Oil-Should-Be-Around-10-a-cnbc-3612643166.html?x=0&sec=topStories&pos=3&asset=&ccode=

Peter Beutel, president of Cameron Hanover, says in this brief summary that if there wasn't so much speculating and betting on an economic recovery that oil would be around $10-$18 a barrell.  We have more reserves now than we did when oil was $20 a barrell, this is his logic. 

 

Thoughts?

9 Comments – Post Your Own

#1) On August 30, 2010 at 4:45 PM, tfirst (25.38) wrote:

More cars now.....more plastics and other uses for petroleum...inflation of fiat currency...is that enough or should I also mention refining capability?

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#2) On August 30, 2010 at 4:47 PM, outoffocus (23.43) wrote:

lol...on what planet?

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#3) On August 30, 2010 at 5:16 PM, Dow3000 (< 20) wrote:

Artificial demand through stimulus all around the planet plus central banks inflating all currencies...especially the Fed (these people just have no shame or souls or something...) and currently at $74.  I could see us going down to $15-20 with the coming meltdown...but we will then go much much higher due to a crashing dollar in the years after.  How much will it cost in a new currency in say 10 years...I would guess a lot more than now.  Our current standard of living is higher than it will be for decades to come.

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#4) On August 30, 2010 at 5:39 PM, pystocks (24.21) wrote:

Obviously, Peter Beutel has not read any articles about quantitative easing.

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#5) On August 30, 2010 at 6:42 PM, starbucks4ever (97.79) wrote:

He is right

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#6) On August 30, 2010 at 7:19 PM, oldfashionedway (35.30) wrote:

...should be...    ...if... 

There are many things in life that "should be" other than they are.

Prudent investors deal with the reality of the market, as irrational as it may be. 

I would be / should be / could be a millionaire... ( With hyperinflation, who knows? )

If you have tangible evidence that crude oil is going to 10 USD, then invest accordingly.  Good luck!  Hoping all your "trades" are profitable ones. 

 

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#7) On August 30, 2010 at 7:29 PM, Griffin416 (99.98) wrote:

I saw that article earlier and starting laughing.

1) the dollar has been devalued at least 50% since 1982

2) the world requires more oil, so you need more reserves than you needed 30 years ago

3) Oil is more investable through ETFs, oil carriers, futures, etc help bring up the price.

There is no way you can compare what the author is comparing

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#8) On August 30, 2010 at 7:38 PM, vriguy (81.48) wrote:

According to some petroleum engineers in the business that I've spoken to, a good chunk of today's oil supply probably does cost under $10 to produce, but the rest is much much costlier.  We may or may not be past peak oil, but we certainly are past peak easily extractable oil.

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#9) On August 30, 2010 at 10:38 PM, Valyooo (99.40) wrote:

Haha at no point did I ever even come close to agreeing with that, I was just posting it cuz it was something random that I saw...

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