“He who picks bottoms gets smelly fingers”
The Iraqi oil minister thinks that the price has found a floor and says it’s hard to go lower. He also said that there’s no economic justification for the continuous fall in prices and such a steep fall wasn’t expected after the November OPEC meeting. He adds that oil at $40-45 was not in their calculations.
Kuwait says that the countries 2015 budget is expected to be based on an oil price of around $40-45 and that prices can’t be controlled until better economic growth soaks up the oversupply.
There’s going to be a lot of re-working of budget numbers by oil producing countries this year.
The WSJ had a chart of the numbers needed to balance budgets for 2014
Oil producer budget prices
Brent continues to hover around the 48.50 mark and continues to walk the short term support line
Brent crude H1 chart 21 01 2015
