Wink said:
nu awlins ag said:
It's a start. Most thought they would never come to an agreement back in October/November. The mere fact that they are doing this means they want to see prices edge north. Sure, they want market share, but they are starting to hurt for money as well.
So you dont see prices falling below 50? I am afraid US production is ramping up too quickly to make up for any OPEC cuts.
591 rigs? This is HALF of where we were a year or so ago, HALF. By the time the "ramp" up takes full effect, producing etc., the supply should almost be back in line with demand. Prices may dip below for a bit, but won't last long. Demand is bubbling and will only grow with time. The "ramp" up you read about is the EOG's of the world who have built storage facilities and dump oil when the price gets higher. It takes a month or two to drill and produce a well. These blowhards at Goldman's, etc., think these "shale drillers" just turn on a faucet and bam, there's 50,000 bpd. It is quick, but not like these guys want you to think.