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House Price Crash Forum

Oil To Be $500 Soon

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The marginal cost of new oil is $90 bbl so I hate to think what a significant drop in price would do to supply.

Bingo! The juniors working the unconventional plays like the Bakken oil shale and the Athabasca tar sands are already being squeezed by $70 oil and their inability to raise capital. If OPEC follows through and cuts output as well that adds upward pressure on price. then its a race between declining demand as we drop further into recession and declining output as to where price goes from here. The inability to finance is really worrying. Could lead to a positive feedback loop pointing in the direction of down. Everything gets worse because everythings getting worse.


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