Recent videos from Adam Khoo:
Wifey and I have just been looking at when to buy STI ETF. The above videos reignited our interest in crude oil. The videos made sense. Oil couldn't possibly remain as such depressed levels such that only Saudi Arabia can make money. And imagine if only one person can make money and he is able to control how much money he can make. Why would he not want to make more money?
This is the list of top oil producing countries. The top 5 are:
- United States
- Saudi Arabia
- Russia
- China
- Canada
I validated the cost of oil production:
Country | Adam Khoo's Video (Jan 2016) |
CNN Money (Rystad Energy, Nov 2015) |
---|---|---|
United States | $36 / $70+ (shale) | $36.20 |
Saudi Arabia | $10 | $9.90 |
Canada | $41 | $41 |
Brazil | $49 | $48.80 |
Can oil price stay at such levels?
I came across the following articles:
- IMF warns that most Middle Eastern countries will run out of cash within 5 years if oil prices do not go beyond $50.
- $40/barrel - breakeven cost of OPEC member counties.
- Oil and gas companies are going bankrupt.
Seems like it can't. But will it go back to $100 soon?
Source: MacroTrendsIf we measure the peaks and troughs, we have:
For STI, we have: