How about $60 oil by 12/16 for a strongly contrarian opinion?


Photo in Sept '15 by James Ulvog.
Photo in Sept ’15 by James Ulvog.

Somewhere around $60 by December is Harold Hamm’s prediction. If such a comment wasn’t from Mr. Hamm, I would have ignored the article.

Main coverage is at Wall Street Journal:  Continental Resources CEO Sees Oil Prices Doubling by Year End. He thinks Saudi Arabia made a serious mistake by pumping so much oil. That pushed prices way down. It also moved the US to allow exporting crude oil.

He thinks US producers will start pulling back production to balance the market. Production hasn’t dropped much yet but he thinks it will do so soon.

Consistent with just about every other observer’s comments I have seen, he attributes the Saudi production plan as an attack on US producers.

He thinks a variety of factors will lead to crude prices of around $60 by the end of 2016. Article says the “market”, whatever that comment means, is anticipating $20.

Oil this week is in the $30 range.

My feeble observation is that as prices edge up a bit, Bakken producers will bring more production on line quickly.

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