How Low Can Oil Go?

by Rick Ackerman,

This has been a very significant correction so far, for sure, but it looks like it has farther to go - presumably into the high $50s or low $60s.

The news cycle regarding crude prices has become more expansive, suggesting that although the Saudis still control supply at the margin, they are in no rush to run up prices and tax the world anew. I still foresee another major upthrust, but we shouldn’t be surprised if, absent an exogenous geopolitical shock, it takes at least several months for bulls to build a base. The threat of war between Iran and Israel has somewhat receded because Syria seems ready to kick Iran out of the region, having wearied of Israeli strikes against bases on which Iran has stored weaponry and military gear.

So crude is down, but it would be wrong to count it out.