They do, but they have seen the demand destruction that high prices over a sustained period has had. If price stays at 100bbl, odds are very good many countries and companies will continue to work towards finding alternatives and implementing them quickly.I wouldn't count on it.
OPEC doesn't want oil below $100 a barrel.
They've got the means to make that happen by simply turning off the spigots at some of their fields.
You and I both. I consider the $50-60 range reasonable and realistic for today's market. The runup from $80 to $147 was just completely irrational and was fueled almost entirely due to weaknesses elsewhere in the financial markets. Demand had certainly not risen that drastically in such a short period of time and nor had we had a significant loss of supply, though thanks to the market manipulation of OPEC, supply had remained stagnant from OPEC nations.It is still well over what it was a few short years ago with no reason for the huge increase in price. Until it gets back to a reasonable level, meaning sub $60, I still will think it is too high.
Even $60 is too high in my opinion, since it was $20 all of the 90's. But the company line now is $60 is the new break even price for all the new drilling methods so I guess that is what we should hope for.
Didn't you get your gas rebate check in Alaska?
The contracts purchased are forward looking, we won't see the reflection of the goods purchased today until October at the earliest.