Oil Trades Near Five and a Half Year Low

What was the price of West Texas Intermediate crude that caused concern in the market?

• $70 a barrel

• $65 a barrel

• $60 a barrel

• $75 a barrel

Why are smaller oil companies in Oklahoma and Louisiana particularly vulnerable?

• They have government support

• They are highly leveraged and face high drilling costs

• They have abundant resources

• They are not affected by oil price changes

What is a significant challenge for highly leveraged oil producers when prices drop?

• Access to more loans

• Increased demand

• Higher profits

• Inability to cover costs even at break-even points

What is the expected future price of oil according to the forward curve?

• $70 per barrel

• $90 per barrel

• $100 per barrel

• $80 per barrel

How does the expected future price of $80 per barrel compare to previous highs?

• It is the same as previous highs

• It is not related to previous highs

• It is lower than previous highs

• It is higher than previous highs