Oil producers’ costs create floor

Being competitive in commodities is about being the low cost player or at least among the lowest quartile players.  Eventually, prices will fall (whether due to supply this time or demand in 2008) and you better be the lowest cost or else you may be cash flow negative or worse yet, out of business.  In commodities, this is proven again and again.

oil-chart

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s