Oil price to drop to 20usd per barrel

[RV Pundit]

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We can forget the oil bonanza...and enjoy the saudi oil.
http://www.nation.co.ke/business/Bank-predicts-drop-in-crude-oil-prices/-/996/2869242/-/wxucpwz/-/index.html

[Kadudu]

Good for consumers but that would be a catastophe for oil producing countries like Nigeria, Angola and Venezuela.
Eventually the prices will go up due to demand. i think countrie like Kenya and Uganda should concentrate and produce for the local market saving the countries a lot of hard earned foreign exchange.

[RV Pundit]

Yeah those who depend entirely on oil will have to learn quickly about diversifying their economy. Production costs for kenya and uganda oil even for local demand doesn't make economic sense at the current prices...leave alone at 20usd per barrel. Only the saudis and the likes can sustain those prices. Their target is simple; knock out more producers (mostly US shale producers); and eventually up the prices; by then your equipment is old, rusty and you're bankrupt

Good for consumers but that would be a catastophe for oil producing countries like Nigeria, Angola and Venezuela.
Eventually the prices will go up due to demand. i think countrie like Kenya and Uganda should concentrate and produce for the local market saving the countries a lot of hard earned foreign exchange.

[Kadudu]

True. It's only the Saudis and their brothers around them who can compete at that price. The US oil producers will be in for trouble as their profitibility beginns around 60usd per barrel. I think Kenya's known reserves are too small for exploration at current market prices. I do not mind kenya waiting for another decade or two before starting to exploit oil fields since it seems we are not yet mature to be able to manage big time finances.
Even Anne Waiguru the so called godmother of IFMIS at the Treasury has failed to control mischief in her ministry, although we were told the system is foolproof.

Yeah those who depend entirely on oil will have to learn quickly about diversifying their economy. Production costs for kenya and uganda oil even for local demand doesn't make economic sense at the current prices...leave alone at 20usd per barrel. Only the saudis and the likes can sustain those prices. Their target is simple; knock out more producers (mostly US shale producers); and eventually up the prices; by then your equipment is old, rusty and you're bankrupt

[RV Pundit]

Indeed.Oil for now is lost cause...we should try other minerals. The saudis may even be targetting other sources of energy..like electric cars...oil at those prices...goes back to being really dirty cheap.

True. It's only the Saudis and their brothers around them who can compete at that price. The US oil producers will be in for trouble as their profitibility beginns around 60usd per barrel. I think Kenya's known reserves are too small for exploration at current market prices. I do not mind kenya waiting for another decade or two before starting to exploit oil fields since it seems we are not yet mature to be able to manage big time finances.
Even Anne Waiguru the so called godmother of IFMIS at the Treasury has failed to control mischief in her ministry, although we were told the system is foolproof.

[Georgesoros]

$20?
Maybe for a day.
They will cut production and zoom up they go.
After gulf war same thing happened.
So enjoy for a week or so at most if prices Are $20.