A recent meeting of the national oil companies in Beijing had predicted oil prices would fall to about $40 a barrel, Fu Chengyu, chief executive of China National Offshore Oil Corporation, told a conference in Barcelona.
“The consensus at the time was that everybody realised the oil price would be even lower,” Mr Fu told the Global China Business meeting. “Nobody knew where it would be but most of them said around $40.”I wrote that it's unlikely that oil will fall below $50 a barrel. The Saudis are unlikely to allow this. They're the only ones that can make a huge change in the price of oil unilaterally.
Even with a production cut from OPEC, decreasing demand is still cutting into the price of oil. It's even dropped below $2.00 in Palatine Bridge.