Other than Goldman Sachs, sure don't see anyone saying WTI will go to $70. Maybe a warm winter and very soft global economy takes us there, but few "experts" think WTI is going to fall off a cliff.
Read: http://www.oilandgas360.com/will-drive- ... f-26401157
Last week John Gerdes, Head of Research for KLR Group, told Oil & Gas 360®: “The cash breakeven is $73 oil, with no return. If we end up at $85 NYMEX, we’ll see a 10% activity reduction level. If it’s $80 NYMEX, we’ll see a 20% activity reduction level starting next year. At $80 to $90 NYMEX, you’ll see adjustments over the next six quarters. I see conclusions suggesting the industry is free cash flow neutral at $90 oil and $4.00 gas, but if we stay sub-$90 we’ll see adjustments.”
Harold G. Hamm, chairman and CEO of Continental Resources (ticker CLR), spoke with CNBC on Tuesday about Goldman’s revised forecast for oil:
“First of all, there’s not a glut in the market at all. What we’re seeing is people out here projecting next year that we might see that. … I frankly don’t believe it’s going to happen. … They discount what’s going on in the rest of the world. The oil supply is going down in Venezuela, the North Sea, Argentina and all these other places; even ours in Alaska and California is going down. The only place is onshore U.S. that’s going up. We’ve had challenges in Gulf offshore… so that supply has been cut, so the only place is onshore U.S., and demand is there in the world. … Even though China’s economy may be soft, those people are still buying cars and building roads.”
Oil Prices - October 28
Oil Prices - October 28
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Prices - October 28
WTI closed today at $81.42 and is up after hours.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Prices - October 28
Watch video: http://finance.yahoo.com/news/crudes-do ... 08362.html
West Texas intermediate crude (:.OWTI-XX) dropped below $80 a barrel, hitting two-year lows, with some analysts predicting that it could head toward $70 in next year due to oversupply.
"I think there's a good chance it's bottomed," Sankey said. "Certainly, seasonally this is a low, and we think it's a terrible time to capitulate and go negative. We're a month away from an OPEC meeting. We do think the Saudis may be trying to scare the other members of OPEC into making cuts with them, which is why the news flow has been so overwhelmingly bearish."
West Texas intermediate crude (:.OWTI-XX) dropped below $80 a barrel, hitting two-year lows, with some analysts predicting that it could head toward $70 in next year due to oversupply.
"I think there's a good chance it's bottomed," Sankey said. "Certainly, seasonally this is a low, and we think it's a terrible time to capitulate and go negative. We're a month away from an OPEC meeting. We do think the Saudis may be trying to scare the other members of OPEC into making cuts with them, which is why the news flow has been so overwhelmingly bearish."
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group