Crude Oil Prices: When will they rebound?

[dan_s]

"....oil demand is around 92 million barrels of oil per day. While that demand is somewhat flat due to a slow global economy, we know that as more people around the world drive, especially in China where only about a quarter of the population drives now, demand will increase somewhat into the next decade. In order to quench that demand, not only must the wells that exist keep pumping, but new wells must be added to replenish depleting wells. Adding new wells is not cheap. The amount of conventional low-cost oil on the planet is far below what is needed any longer, thus it is only a matter of time before oil shoots back up past $80 per barrel."

Full article: http://www.marketwatch.com/story/three- ... 2014-12-15

[dan_s]

"Mark Mobius believes that by as early as next year the price of oil could rebound to $90 per barrel. The reason is simple, US shale producers are going to curtail drilling and that new source of oil is going to stop growing andn potentially decline."

Watch Video: http://www.gurufocus.com/news/300244/wh ... nd-of-2015

[dan_s]

Scotiabank economist and commodity specialist Patricia Mohr is calling for a dramatic rebound in oil prices, likely in the double-digit range and possibly as high as 25% to US$70 per barrel by late 2015. “WTI oil prices at US$56 are over-sold – soon to trigger a sharp correction in U.S. drilling activity, bringing supply back into line with demand,” she said in the Scotiabank Commodity Price Index report. “Oil prices will snap back by mid-2015.” She noted that margin calls on WTI futures are exacerbating the downward spiral in oil prices, but trading levels below US$60 look unsustainable.

Full Article: http://business.financialpost.com/2014/ ... =a36f-6428

Ms. Mohr also expects M&A activity will heat up in the oil sector. < I agree 100% and many of the companies in our model portfolios are prime takeover targets. - Dan