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What happens to crude oil price now?
The crude oil is making the mother of all volatilities look miniscule. The crude oil has fallen more than 70% from its peak. In the next three years the crude oil will fall below $10 a barrel and gas price will hover around 80 cents a gallon.
For now (short term) look for a decent rally in crude oil as the Arab sheiks cut the output in big panic.
United Arab Emirates said it would reduce production to comply with OPEC’s supply curbs.
Abu Dhabi National Oil Co., the biggest producer in the U.A.E., will reduce oil supply to Asia in January and February, according to a statement sent to Asian buyers. OPEC agreed to a record production cut on Dec. 17 in response to collapsing demand because of the economic slowdown. Oil also advanced because the dollar dropped against the euro.
Crude is rallying as I write this article – up over 4% today. Crude can go as high as $65 a barrel before falling back below $20 and eventually below $10 a barrel.
BIZ/FINANCE ARTICLES
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