How Low Can Oil Go?

Goldman Says $20

a Barrel Is a Possibility 

“The oil market is even more oversupplied than we had expected and we now forecast this surplus to persist in 2016,” Goldman analysts including Damien Courvalin wrote in the report. “We continue to view U.S. shale as the likely near-term source of supply adjustment.”

DYI Comments:  Fracking and horizontal drilling has no doubt increased the amount of oil being pumped out of the ground, however, the bigger picture is lack of demand as the world wide economy slows driving down oil prices further.  This has created a sell off, on average, of 40% for most oil stocks and energy sector mutual funds such as Vanguards Energy Fund symbol VGENX. The oil and gas industry is now trading at a discount to the general market....A great time to dollar cost average at these reduced prices.  If oil does go as low as $20 dollars per barrel lump summing would lower your cost basis further setting up an excellent return when oil prices rebound.

DYI