"However, the pullback in oil prices may soon become a long opportunity as oil producers may start to cut new drilling projects and costs."
"For producers to move forward with new wells, they need oil to average at least $65; prices under that make drilling unprofitable."
Oil prices are currently at $63.75 and continue to drop, prompting concerns among producers about the viability of new drilling projects. Producers require a minimum oil price of $65 to justify drilling, and with Goldman Sachs predicting lower prices ahead, many rigs could be reduced. This situation may lead to decreased supply, which could eventually push prices back up. Amidst market fear, experts suggest this might be an optimal time to buy, recalling historical resilience in markets and the wisdom of investing when others are fearful.
Read at 24/7 Wall St.
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