Oil Prices falling?

 

Image of "OPIC" can you see it.

The oil market has become more bearishly positioned than it's been for several years.
Brent crude fell through $100 for the first time in 16 months, as Chinese import growth fell unexpectedly. Besides softer demand from China, the developed world is using less oil in general.

"There's as much as 30 million barrels sitting on floating storage, and it's got to go somewhere. Eric Lee, Citigroup energy analyst said his long-term forecast for Brent is $70 to $90 per barrel, and it could be starting to head in that direction.

So far OPEC is pumping 30 million barrels a day, and Saudi Arabia, the world's swing producer, has not said it would step back from its 10 million per day production level, analysts note.

John Kilduff of "Again Capital" said he expects to see WTI fall possibly below $80.
and the Saudis could easily change the outlook for oil. "If the Saudis don't respond, the price drop is going to be fairly swift." Any action is a double sword edge and may push the prices further down. 

The Saudi would survive on $70/barrel, while for now it is all about defeating the ISIL terrorists.

Just a thought.