So What Does This All Mean for Oil Prices in the Near Future?
I believe that oil prices will fall again .
I expect prices to dive below $30 per barrel sometime in 2018 or 2019 . Inventories are at record highs. The U.S. is headed toward record daily production. Refiners are running at record levels, driving supplies of gasoline and other finished products higher. Worldwide, the fragile oil-driven, cash-starved economies of OPEC and Russia will make production cuts unsustainable. Abandoning their production cuts will push the oil price lower.
Here’s the kicker...
If OPEC and Russia can rein in production and cut daily supply, oil prices will rise… U.S. oil companies will again hedge their future production and continue to... drill baby drill !
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