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The oil king has said US$70/- is fair..?. Well since mentioning it, px has fallen to <50/- all due to credit that oil producing state having say they not cutting production...errr...just yet, so another mid to long term investment, thot that px cheaper can be cheaper...just for now and in near term.
Its lowest was 1.77 when STI was 1472.77. Your choice loh. CA applies.
guessingly think u r vested in oil linked counters......kep corp, cosco, spc, china avaition oil....mayb one , two or three of them.
there must b at least one or two reasons y u continuously alert ppl here on depleting oil [in time to come] n oil price wud likely cause a crisis [if no investments is put in 2 extract oil now, cos when recovery begins supply wud not b able to meet demand], appreciate if u state ur one or two reasons.
Busness Times 2 December, 2008 - Prepare to ride out low oil price
Oil and gas sector firms must be ready to innovate and invest even if demand remains flat
Industry leaders say they must not lose sight of the fact that once they recover from the fact that once they recover from this crisis, there will still be insufficient oil in the world to cope wih surging global demand.
Mr Westwood is a published commentor on the energy industries and will be giving a presentation at this year's OSEA2008 conference in Singaopore. According to him, "The biggest challenge facing the world is the limit of oil supplies. Over the next decade this, in my view, this will be become an issue of greater significance than global terrorism. For the next 5 years oil supplies may be OK, but depletion is happening and by about 2011- 13 global production will cease rising - just to maintain exising levels we need to discover and develop the equivalent of a new Aaudi Arabia every 3 years!"
The Internationa Enrgy Agenmcy (IEA) expects world energy demand to grow by 1.6% on average between 2006 - 2030 - an increase of45%
Mr Westwood adds," The short answer is that in the short term, they (oil price) could go lower, but in the long term hey are going to be very much higher. Oil is not a short term business and we believe that now is a great time to invest
Its quite closed at its 1470 STI low of 1.77. Just monitor n action accordingly loh.
CA applies.
OPEC also must be worry to go against the rest of the world. When the world got not enough to eat, still want to increase price. Might be inviting war at their door step.
Look at US, France, Germany and China. The no of warship, soldierz and airplane they have together. Can take any OPEC nation out in weeks. (Just need to find a very good excuse to start a sparks) If they cannot afford to buy oil to use on their warplance, warship and tanks as good as no weapons for their own defence. Will they see OPEC as a threat... Think again
KUWAIT CITY (AFP) - - King Abdullah of OPEC powerhouse Saudi Arabia said in an interview published on Saturday that oil prices of 75 dollars a barrel would be "fair".
His comments appeared in a Kuwaiti newspaper on the day OPEC was meeting in Cairo to review the turmoil in the world oil market and decide whether another crude output cut is needed to stop prices tumbling lower.
"We think that a fair price of oil is 75 dollars a barrel," the Saudi monarch told As-Sieysah newspaper.
One must appreciate the fact the oil that is available underneath and recoverable oil are two different issues. Oil might be in large amounts in certain parts of the world, but it is getting more expensive to recover them. There might be lots of oil but if oil is not recovered can it be used?
Have you guys read the outlook for oil in the website of one of the listed stock in SGX? In it the company mentioned that recoverable oil from land is getting less and the direction is more towards deep sea. Has one realise what is the cost of recovering oil from deep sea? Did you read what the CEO of a major oil company say in one of the article in the Straits Times about a year ago. I should have cut out that article but what was mentioned by the CEO is still clear in my mind. In 2 years, easily accessible oil may not be able to meet increasing demand.
Ask yourself what was the situation in 2001 when oil price was low and what is the situation now? When you analyse you compare the situation before and after.
If OPEC close the oil taps can oil price keep dropping?
Currently, the world relies on fossil fuels for approximately 80 per cent of its energy demands, of which oil constitutes around 35 per cent. By 2030, renewable energy sources are likely to increase in contribution - but only marginally. The world will still rely on oil for potentially 25 per cent of its energy demands.
we shall see, with such extreme views on oil prices. Yet there are reports that still claim that oil will bypass US$200 due to energy demands. Though i believe US10++ for oil is still unlikely
In a civilisational perspective, fossil oil is but one phase in the history of human energy discovery and usage.
Perhaps more discoveries are waiting to be made... 
impossible for oil to dip that low for the following reasons:
1) USD $ is gonna sink..due to the huge ass debts it has ..funding this ..bailing out that.. it's gonna b a worthless currency soon.. and thus oil being in US$..will spike..
2) Oil is a scarce resource..supply n dd..with cheap oil will pple still conserve energy?
It will be exactly BBs' with their huge venture capitals that drive the price down to happen, perhap even undershot surpassing my lowest end price level! Cost of production is varied from different producer to other producer in the range of USD 6 to 12/barrel.
Centaur ( Date: 27-Nov-2008 13:47) Posted:
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Worst case i think will still be above $30
The future scenario will depend much on how the recession will play out in the months ahead...
As it is, the world economy is now surviving on government bailouts (ie. emergency koyok), and not business activity as such...
When business activity slows, demand for oil will then sink even further...
Since the US etc used to be big customers, China and India will surely be weakened by these big markets' own weakness, thus depending only on their domestic markets for their growth if any.
highly unlikely, if i'm not wrong this price is muchlower than the production cost. Besides, do u think the BBs will allow that to happen?
Hulumas ( Date: 27-Nov-2008 12:42) Posted:
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Purely prediction, crude oil price will dip to around USD 18/barrel in 2009.
You need stimulus package to create jobs. So you still need energy in whatever new industry is created. We have a recession but do you see less cars on Singapore roads? The same applies to roads in China and India and many other places.
Oil price is easily manipulated by OPEC, as long as price fall below their target price, they just announce supply cuts. The only possible way to reduce oil price permanently is to reduce demand which is unlikely for the near term
Oil prices will be more stable now with world determine to correct global recession. Oil pump px can still fall a little.