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Potential opportunity pending in oil/oil based stocks. I’m interested around the technical area of $40.oo

At some point, assuming that the price of oil continues to fall, production of oil will become uneconomic for some marginal producers and they will cut production.

At some point, demand for oil will stabilise. This has been a profitable business [too profitable] for 150yrs, it won’t just disappear.

At that point, the price of oil will stabilise and the low cost producers will start to become profitable again.

Markets tend to overshoot in both directions. At $40.oo, the yield will be circa 4%.

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