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$50 oil = $80 oil before
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$50 oil = $80 oil before# Stock
a*1
1
In the past 22 month, the cost of all E&P companies has been down about 30-
40%. They are more lean, more efficient and have much better balance sheet.
All these would translate into much lower all-in-cost today than 22 month
ago.
The $80 break-even point at Jun 2014 has been reduced to $50 break-even
point today and most of the companies will make money at $50 oil.
With $50 oil, sp500 will be at 2250, banks will have 2X more gain and
emerging market will have 3X to run in tandem from where we are here today.
The million dollar question is when will we see $50 oil.
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