What is the perfect price for oil? – When it’s too high, consumers start freaking out and using less. When it’s too low, oil companies cut back operations and lay off thousands of workers – Perfect price crude oil - Arhive

When it’s too high, consumers start freaking out and using less. When it’s too low, oil companies cut back operations and lay off thousands of workers.

Opinions on where the sweet spot currently lies differ widely, but analysts and strategists say it’s probably somewhere between $60 and $70 per barrel.

“If you are asking what price is high enough to sustain supply and low enough to sustain demand and perpetuate today’s largely balanced global market, it is probably in the neighborhood of $65,” said Sarah Emerson, a leading energy strategist at ESAI Energy.

Emerson added that the “perfect or ideal oil price” would depend on whether you’re a producer, consumer or regulator.

Still, some analysts believe that oil markets can achieve a delicate balance that works for most.

Oil market specialists at EY noted last month that oil markets in the first three months of this year “converged to a sustainable equilibrium.”

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