Why oil could plunge to $20 a barrel, but probably not $10 - MarketWatch

Why oil could plunge to $20 a barrel, but probably not $10 - MarketWatch



Here is an outstanding article about how low the price of oil can actually go.  The short answer is that oil could briefly go below $20 a barrel, but it could never last long at $10 per barrel because Saudi Arabia cannot supply the whole world with oil.  The author presented an excellent chart which showed the short-term break even costs for various countries.  We are getting close to where some countries may have to shut off their supply.  This in turn will increase the price of oil.



If you are a nimble trader, you could possibly make money playing the volatile movements of oil with UWTI and DWTI, the 3x up/down oil price ETFs.  The buying and selling should be done at the extreme edges of price movement because the stock market could easily over-react to oil prices for months to come since we have so much supply and a huge amount of speculation going on.