If oil drops below $30 a barrel, brace for a global recession

If oil drops below $30 a barrel, brace for a global recession



Here is a very good article discussing the current oil price along with thoughts about what might happen in the future.  One OPEC minister felt that the $46 oil price we have now is the approximate bottom, and oil will rebound in the future.  Others warned that if oil drops to the $30 range, we will have a global recession.  Over 80% believe that the price of oil will go higher although only 42% expect the price of oil to be in the $60-$80 range by the end of 2015.



Since no one can guess the exact bottom, I believe we are close enough to load up on some oil stocks.  I have bought Vantage Drilling (VTG) and Rex Energy (REXX).  I will also be closely monitoring these stocks and the price of oil in order to buy more shares in the future.  We are living in interesting times, and I am willing to hang on for a while because I believe select oil company bargains will outperform the market in the next year.