As Oil Crashes Under $40, How Much Further Can It Drop
I am still standing pat on my under $30 assessment, which I first bandied about back in the fall, a few months before exchanging the newsletter format for the blog. The last assessment I made was for oil at $30 plus or minus $5. That still stands. Demand is weak, and US demand is not taking up the slack. Supply remains high, and all the autocratic oil nations need to pump as much oil as they can to preserve national stability. I cannot see an end to this condition, and the world economy is weakening.