Where Will Oil Go?
News story is reporting that oil is declining on recession fears.
I have been saying that expect oil to retract, I am not sure where to, but I would think that it sees at least under $70 again, unless of course the US dollar takes another big drop.
Saunafool had a blog about non-OPEC production and how what is coming on stream will increase supply ahead of declines, and that should send the price down.
Add in a recession and you also have a reduced demand.
Oil is about supply and demand. Those new projects have to pay for themselves and can not easily be shut down without crippling the cash flow of the operating company.
The other thing that has been happening is speculation, which has driven the price up further.