psi writes: "That's the key difference between this oil crash and previous crashes IMO. A much greater proportion of supply is higher up the cost curve. The Canadian oil sands are already well under, as are many of the US shale producers and deeper offshore projects."
I wholeheartedly concur. It's key difference compared with IO as well. In IO 3 firms dominate and can survive IO at $45-$55. Plus they can supply the entire mkt as oversupply will exist even with minor players folding. With oil the surplus supply is far far less PLUS many are already selling at a loss. Just needs a 4-5% drop in supply and crude will rally. Will it rally to $75? I doubt it can get there soon but $65 quite feasable imo.
So are the low cost oil producers safer than low cost IO miners? I'd use the criteria set out by JID above when choosing.
STO Price at posting:
$7.27 Sentiment: None Disclosure: Not Held
WPL Price at posting:
$34.46 Sentiment: Hold Disclosure: Not Held
DLS Price at posting:
69.0¢ Sentiment: Buy Disclosure: Held
