| For the first time since last October, the oil price has nudged or broken the $US50 a barrel barrier. Back then, I argued that $US50 or thereabouts would turn out to be a long-term ceiling for the oil price. At the time, with crude prices still above $US60, almost everyone believed that $US50 would be the rock-bottom floor.
After all, futures markets predicted prices of $US75 or higher; the Saudi and Russian governments needed $US100 to balance their budgets; and any price much below $US50 was considered unsustainable, because it would put the US shale-oil industry out of business...............................................Full Article: Source
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