Hey Ayoyo, Saudi's cost of producing oil is around $10-$12 per barrel. According to Wood-Mackenzie, Saudi's reserve will dry up in 4 years if they continue to produce at existing levels. Although people can say that saudi can continue to ramp up supply because their production cost of oil is so low, it is not really true in reality. Saudi's fiscal breakeven level for oil is around $80 per barrel. They are still rich, but it's drying up exponentially.

If you noticed, shares are breaking support like crazy and it is expected to go down even further. I don't think its the time to accumulate. We might be going into a recession and the financial markets could be the biggest indicator. It's true that people are overreacting, but there will be a multiplier effect on the overreaction. If this continues, it will eventually spill over to the economy. Unlike 08/09, we had rigorous quantitative easing coming from US and the China growth story acting as a huge impetus to recovery. This time, China is the problem and oil price isnt expected to experience the exponential rebound it had in the last financial crisis.

Well, I might be wrong...