Hello! Contrary to the expectations of many people, I don’t think that oil prices will remain at nowadays low level for too long. You see, situation like now repeats every decade. First, oil is cheap. Then it gradually rises in price thanks to growing demand. Then at some time it becomes too costly and the level of demand gets deeply down. Oil producing companies’ return is much lower. They receive much less investments, they try to put down their expenses and therefore freeze new reserve developments and cut down oil production. Then oil becomes cheaper by itself, its price becomes more affordable and demand is upswing again! And over again oil rises in price as oil producing companies fail to supply the demand.
As for now, oil demand will start to grow in a little while. SO, it means that oil price will start to grow as well as OPEC has cut oil production considerably. I believe that in this case there is only one thing that could be done - buying up oil as yet it is cheap and making oil reserves.
