I think that the drop is only temporary,because Iran is trying to persuade OPEC to cut production.What will oil prices drop to in your opinion? When and what will they rise to?
Talk about a loaded question. Oil prices will likely stabilize in the short-term with a possible price escalation in the small to moderate range. I believe the prices have adjusted for the political risk attached to the pricing of WTI. Now, will prices drop to the $20-$35 range in the short term? I believe it highly unlikely as we are seeing a bottleneck in the refining (downstream). But I also do not believe oil with break the $100/bbl by the end of 2007 as some of the beautiful people are predicting. Watch for a small price jump after Chavez meets with OPEC.
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