Quote:
Originally Posted by rs899
I don't foresee anything like that in the near future, but at the same time, I can't imagine oil getting any cheaper than it is now. You can be sure new regulations and restrictions will gradually drive up the cost of production and nobody is going to want a rig in their backyard.
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The actual price of crude versus the actual cost to bring it to market are very different things driven by market forces like the NY Mercantile Exchange.
The futures market is a place that's designed to keep prices low (yeah free market) but as we've seen that same market can be used in times of economic uncertainty as a semi safe investment.
It can go down and may or may not. The futures market can only articificially inflate the price so much because actual demand drives the price.