sujithsstorock
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this interview was well before beijing olympics !!
TER: How far down do you think oil will go? Are we approaching a bottom here?
ML: It looks like it’s hopefully more than the 80/20 rule. I would say that we’re approaching the bottom, but I think we’re going to go into the 40s first. OPEC scheduled another meeting for the end of November in Cairo to reassess the current oil demand and supply fundamentals. The last cut didn’t really do much in terms of supporting oil prices, but the market probably expects a cut, and the speed at which they’re moving speaks to the amount of demand destruction they may be seeing.
TER: Other than the OPEC meeting and reducing production, what else are you looking for to signal that the price of oil is at the bottom and will start to turn?
ML: That’s a great question. The lowest breakeven price I’ve seen from anybody in the world, whether it’s accurate or not, is $30 a barrel. Eventually, a time may come when oil can’t go any lower because nobody can afford to produce it. That would be the ultimate low, but I’m reading that only Saudi Arabia can produce at those levels. Nobody else can.
rest of inerview i swallowed...all rubbish thereafter
TER: How far down do you think oil will go? Are we approaching a bottom here?
ML: It looks like it’s hopefully more than the 80/20 rule. I would say that we’re approaching the bottom, but I think we’re going to go into the 40s first. OPEC scheduled another meeting for the end of November in Cairo to reassess the current oil demand and supply fundamentals. The last cut didn’t really do much in terms of supporting oil prices, but the market probably expects a cut, and the speed at which they’re moving speaks to the amount of demand destruction they may be seeing.
TER: Other than the OPEC meeting and reducing production, what else are you looking for to signal that the price of oil is at the bottom and will start to turn?
ML: That’s a great question. The lowest breakeven price I’ve seen from anybody in the world, whether it’s accurate or not, is $30 a barrel. Eventually, a time may come when oil can’t go any lower because nobody can afford to produce it. That would be the ultimate low, but I’m reading that only Saudi Arabia can produce at those levels. Nobody else can.
rest of inerview i swallowed...all rubbish thereafter