26.11.2015 - The surprising case for $100 oil
One of the biggest stories over the past year and a half has been oil's epic tumble, which has reduced the price of a barrel of crude from nearly $110 to just more than $40. But one strategist says the commodity is set to stage a striking turnaround. According to Emad Mostaque, a strategist at consulting company Ecstrat, crude oil is now trading at what is known as "half cycle costs"; that is, roughly the cost of getting the oil out of the ground. His point is that $42 oil does not account for other important costs like that of finding the oil or purchasing the land in which the crude is situated. That would imply that the supply of oil will dry up over time...............................................Full Article: Source
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