How low can crude go?

Today with the US dollar Index breaking through 100 (as we thought likely) for the first time since 2000, commodity prices are back in the melt seat.

This clip offers a good discussion of what happened to the confident forecasts of peak oil (and gold and silver et al) theorists; who has some of the least profitable crude to produce (hint: Canada), and just how low can crude go?

Edward Morse, Citi commodities research, discusses what’s driving oil price lower as the commodity wanders further into bear territory. Here is a direct video link.

Earth to stock bulls, it’s not just high yield debt and commodities that are likely to move lower…

“Oil is going back to test its low. … We’re going to hold the low or not. If we don’t hold the low, the selling will accelerate. We’re either going to hold it or break it next week. … If oil breaks to a new low, you have to take it as a negative for the (stock) market.”

–Andrew Burkly, Equity Stategist, Oppenheimer Asset Management, March 13, 2015.

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