West Texas Intermediate (WTI) oil is selling in the $82 range per barrel - way down from recent postings near $110. Overseas, the Brent price for oil is about $97 per barrel - way down from $125 per barrel as recently as early May.
What's going on? How low can oil prices go? Are we looking at the beginning of a major price slide? Is the oil and oil service investment space under a pricing assault?
I doubt it. Here's why: 40% of global oil production comes from places where the national governments cannot afford oil prices to go much lower than they are currently.
The nearby chart tells the tale.
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