Tuesday, December 4, 2007

Stupid Prediction Update: Crude Oil Sinks

Not long ago, we predicted that crude oil would correct sharply.

It appears the correction has begun:

Oil prices have dropped about $10 in one week on the belief that OPEC has all but decided to boost production. But the price drop itself has raised questions about whether the oil ministers will follow through during Wednesday's meeting in Abu Dhabi.


I'm guessing there's a lot more correction to come.

So would cheaper oil mean lower demand for alternative energy plays like our Green Energy Resources?

Not necessarily. As long as oil's trading above $50 a barrel, oil's still considered expensive in terms of the industry and its exploration costs.


1 comment:

johnsmith said...

Crude oil fell, closing at a 17-month low in New York, after a report showed that US consumer confidence dropped to the weakest level on record in October.The crude oil pits is that OPEC will increase production when they meet on December 5th.


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