Why are oil prices so low?

None Business said:
Crude Oil prices, while low, are not actually at an "extreme" and are not the victim of speculation. The oil companies remain very profitable at these prices. XOM's all-in costs per barrel are $20 and Tillotson said just today on CNBC that they would be fine with WTI at $40. Speculators do talk up Oil- they do lie and they do try to push price up. Also, the price of Oil is high compared with the prices of Gasoline- refining is not in the money on the screen right now. So Crude is expensive in that key way.
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Do you really trade according to CNBC?
 
bone said:
Look at how brutally today's high of 51.27, and indeed the $50 handle in general, was rejected by the market in terms of fair valuation. We will need to spend considerable time settling above $50 for that valuation to become the new accepted reality.
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Nice charts. Care to make an update? :)
 
What are the resident experts on ET with over 20 years of experience saying now? Bear rally or or do we have a bottom?

Either way, I'm positioned to get paid and remain firm in my belief that prices are going back up. Probably faster than expected by the 'experts', both on ET and elsewhere. :)
 
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