As much as I would like lower gasoline prices, I hope the price of oil stabilizes.
If (when?) it drops below the cost of production in the US, it will discourage exploration. In the long run, that will hurt our job market (especially in oil-producing regions), and make us vulnerable when the price goes back up again.
It already dropped below that. Wti $45 is for shale to remain profitable. Its $34 right now. The shale companies may be able to survive longer with fed dropping rates though.
As much as I would like lower gasoline prices, I hope the price of oil stabilizes.
If (when?) it drops below the cost of production in the US, it will discourage exploration. In the long run, that will hurt our job market (especially in oil-producing regions), and make us vulnerable when the price goes back up again.
It already dropped below that. Wti $45 is for shale to remain profitable. Its $34 right now. The shale companies may be able to survive longer with fed dropping rates though.
All of them, or just some of them?
Saudi Arabia claims their cost of production is just $4/barrel:
https://www.forbes.com/sites/ellenrwald/2019/01/09/why-it-matters-how-much-oil-saudi-arabia-has/
NP, I thought that's what you meant. I remember an article long ago about the how the price of oil had dried up revenues to Iran.
Venezuela was already functionally bankrupt at $55 a barrel. I can't imagine Venezuela staying afloat much longer at <$30 per barrel. Watch Venezuela!