OPEC missed the boat, BUT, to be fair, no one knew that El Nino would give us one of the warmest winters on record. Well, I don't have to tell YOU that oil prices are down and what the causes are. But in all this doom and gloom remember that oil markets are dynamic. And, I believe the RE-Actions are beginning to have an effect on oil prices. Just think about oil prices over the past 5 or 10 or 20 years.
Oil prices are very unstable when they're too high or too low.
This week, OPEC will meet and I believe they'll announce a production cut. Our studies show a cutback of 800,000 BOPD would be enough to erode the oversupply by year-end. Anything above that would have great impact. Another reason I'm optimistic is that while oil prices have been falling over the past few months, we've seen one company after another announce cutbacks in production and capital spending. But markets don' t operate in a vacuum.