Oil Price Temporarily Low?

Regarding recent posts here on the price of oil:

Looking for Good Information on Commodity Deflation
Oil Price Changing Short-term Outlook for Hawaii
KIUC Should Act on Limited Risk Hedging NOW
Why was there the Recent Run-Up and Down of Oil Prices?

Here are two more good new videos to watch on this:

Oil Seen Trading at $95 Bbl in 2009
Oil Prices Plummet

Regarding Budgetary Oil Price Floors for Individual OPEC Countries:

From: www.rgemonitor.com
"GCC Gov't Expenditure: Will Lower Oil Prices Endanger Budget Expansion?"

"2008 budgets expanded cautiously after overspending in previous oil booms led to period of underspending. Falling oil prices may cause governments to cut fiscal spending in 2009. The lowest breakeven oil price that would bring 2008-2009 budgets into balance is in Saudi Arabia ($30/bbl), followed by UAE ($40/bbl) and Qatar ($55/bbl). Therefore, that means that Saudi Arabia can maintain the current level of budget spending even if the oil price were to fall to $30/bbl. The highest breakeven is in Kuwait ($75/bbl), but that is mainly due to the one-off budget transfer of c.$20bn to capitalize the social security system in FY08/09. The average breakeven for GCC is $50/bbl (Merrill Lynch)

Saudi Arabia's breakeven price is among the highest among GCC countries because it is spending oil revenues on a lot of projects. Saudi Arabia will need crude prices to remain above $49/barrel to avoid fiscal deficit. Bahrain and Oman are at risk of running 2009 deficit if the oil price remains around $70/barrel (IMF)." Click Here For Full Analysis

I think KIUC still has some time to begin a staggered strategy on this while the price is still more than 50% off its highs, but time may be of the essence here.

Aloha, Brad