Strifen
Molten Core Raider
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I'm planning to park money into dividend paying majors fairly soon here. Oil prices can probably drop further, but I wouldn't bet on them staying at $40-50 for longer then a year. Supply disruption is already occurring it's just ~6 months out because the producers are hedged to the wells they've drilled already.
Once the oil market shakes out the excess supply in a year or so and prices start rising again, watch out. I wouldn't be surprised to see OPEC slightly cut production in a rising price environment which would result in oil prices correcting to 10-20% over their 2014 highs once this is all said and done. We might be looking at another oil shock come 2016-2017ish if prices remain too low for too long.
Once the oil market shakes out the excess supply in a year or so and prices start rising again, watch out. I wouldn't be surprised to see OPEC slightly cut production in a rising price environment which would result in oil prices correcting to 10-20% over their 2014 highs once this is all said and done. We might be looking at another oil shock come 2016-2017ish if prices remain too low for too long.
