It appears cheap oil is here to stay

[Kilgore]

Found this in my morning news digest. It appears that the Saudis want cheap oil to drive out the higher cost producers. Good bye tar sands?

"Mr Naimi said: cutting production was no longer in the interest of Opec producers; the price of oil may never reach $100 a barrel again; even if non-Opec producers come to an agreement on cuts, the cartel would not now change tack; high-cost producers may try and hold out but the financing would sooner or later dry up."

http://www.ft.com/intl/cms/s/0/2e46c53c-8f2d-11e4-b080-00144feabdc0.html#axzz3NI5XR5kW

[belzabubba333]

1. no not here to stay. and when the saudis decide to end this it will rebound to previous

levels and beyond

[Hoppy]

4. --then the high cost producers will go back to drilling and pumping.

[belzabubba333]

6. oh i get what youre saying

[n2doc]

2. Well there are idiots in my town who feel that way

Judging from the number of giant SUV's and trucks with new temp license plates on them

[Adrahil]

3. People have very short memories, and can't think ahead. n/t

[sendero]

5. Even if the Saudis wanted to do this..

... they could not because their own supply of cheap and easy oil peaked a long time ago.

But, this particular price scenario could easily last for years I believe.