From Telegraph:It is time to become bullish on the oil price. The marginal cost of producing a barrel of oil is about $50. This is how much it costs the average oil company to drill, dig, pump and deliver a barrel of crude to market.
If the price falls below this level, some producers will be pumping oil at a loss. So, with the oil price close to its marginal cost of production, Questor believes now is the right time to buy oil….. Full Article: Source