Seems like may be heading for another post-july fourth downturn like last year.
4 replies (most recent on top)
Brexit is a speed bump. Means nothing (unless you live in the UK). Look at supply and demand. Iraq, Nigeria, Venezuela, et.al. will drive price. US shale oil will keep price depressed. Price goes up and US wells get frac'ed, price will tank. Who wants to go bankrupt first?
I doubt we will see oil in the 20's range. Maybe as low as $38. I think the most probable range for the next 5 years is $40-50 and no more than that. Not good for the O&G industry, but great for the consumer and good balance got the non-energy economy in general.
Brexit could trigger a world-wide recession. That could kill any demand revival unfortunately.
Another dip into the 20s will have dire repercussions for the industry: many more bankruptcies and layoffs.