Will Oil fall below $ 100?

Saudi Arabia said yesterday that it increased oil sales by 300,000 barrels per day in May and would increase it another 200,000 barrels per day in July. The announcement was in line with expectations. August crude oil closed up $1.38 at $136.74.

Nigeria continues to have problems keeping its oil production safe. Late last week, a 120,000 barrel per day Chevron plant was closed after its pipelines were attacked. Earlier last week, a 200,000 barrel per day Shell facility was closed.

Barron's ran an article over the weekend saying that crude oil could fall to $100 per barrel by the end of the year. What would it take for that to happen? Saudi Arabia's announced production increase, slower world demand, and firmer U.S. interest rates to stop the flow of investors bailing out of the dollar.

MCXARUN
9994500540