Can't see this going lower than 56cents if the oil price holds...

Can't see this going lower than 56cents if the oil price holds the current lows.

OPEC meeting tonight with rumours denied about a 1 million barrel a day cut. Still not enough nails in the coffin of shale yet. I think the Saudis will make noises about the market coming into balance but will keep the screws wound nice and tight on the shale industry. Might see more shorting activity off the back of the "disappointment" that could send oil spiking lower very briefly. Might be a good time if this happens to buy my 30% holding in DLS back. 56 cents is a target but anything around 60cents should be good.

My feeling is when shale oil production noticeably hits the skids, sometime next year, the Saudis will start making more noise about the market. We might have to wait a whole year before we get the news we are waiting for though.

This index rebalance should affect us much with the merger on the horizon.

Eshmun