Oil Price Could Drop Into The Teens

An increase in the amount of idle rigs and an overflow of oil supplies is causing some experts to think that the oil price could possibly drop even further. One thousand rigs have been marked as idled since the past year and a half, as per a Baker Hughes report. This continuing trend could have extreme effects on the price of oil.

Stephen Schork of Schork Group Inc. believes that the price of oil could fall into the teens and stated that “Oil has become so disconnected to the cost of getting it from the ground that now we’re trading on round numbers. The next target is $25, and then we’ll head to $20. Oil in the teens is a real prospect in the near future.” The price of oil is too jumpy to accurately predict, but one can be fairly certain that it will continue to decrease.

http://houstonenergyinsider.com/?p=4890