$20 oil?

[mkarpoff]

Wow. A scary prediction on the Preview page of this week's Barrons. "According to Steve Briese, editor of the Bullish Review of Commodity Insiders, oil will drop to a capitulation low of $20 but, before it does, it will hit $55. Are you familiar with this man, or his publication? Sure makes me want to unload. He says the reason is that commodity funds will have exhausted their buying at $50. I would sure like your take on this. Thx.

[dan_s]

I never heard of him and I think it is a crazy forecast. U.S. oil production is now on steady decline of well over 100,000 per day each month. OPEC is maxed out with no more production capacity. Iran will not bring anymore oil to market other than what they are now smuggling out through Iraq until the sanctions are lifted mid-2016. Demand for refined products continues to increase. Supply / Demand will be very tight by year-end.

[mkarpoff]

Thx for taking time out from your Labor Day bar b q.