A lot of my investments are in oil and gas stocks, so Im taking a hit right now. Saw a report the other day and the leaders of OPEC stated they will not reduce production and will drop it to 20$ a barrel, if need be. They are purposely flooding the market with inexpensive oil for one purpose, to starve out the little guys.
I was reading another article about the drop in oil, the consensus was that over the last 10 and even more so 5 yrs there has been a boom in the little guy oil producers, and they were slowly bleeding the big names so OPEC was dropping the prices to starve out all these little guys, OPEC can survive they have the reserves, the little guys cant hang on as long.
This is were I make a lot my money, so I try to get as much info as possible. I don't see the prices going back up for a while. The lower prices is good for the economy people have more disposable income and they are using it (GDP was up 5%) so for 98% of the country this is welcomed!
For many in the energy field this will not fare good (including myself with investments) as the belts get tighter to try and survive the lower prices for the smaller productions, there's going to be some weeding out, only the strong will survive.
I honestly think this will settle out around Jan/Feb time and stay at that level until spring to early summer and then a slow increase.
These are just my thoughts, stranger things have happened...............
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