Eshmun Good post One commentary I heard the other day is that...

Eshmun

Good post

One commentary I heard the other day is that the marginal producers need to keep producing to placate the bond holders and this is the only real reason they are still in production otherwise we would have seen a tailing off of the output by now.

So as you allude to, a lot of these guys are in survival mode and are hanging on by their finger nails.

So this begs the question:-

Does all the hype surrounding Iran barrels really justified the huge fall we are seeing given that the US production will start falling dramatically this year??

I guess the markets and the sheople, being as myopic as they are, can only concentrate on one thing at a time. Won't be long before the rhetoric changes and balancing starts the next run up of the oil price not because of any fundamental reason but because the traders will want their dues for all the oil (and options) they are buying now. They have engineered it to the oversold area that it is now they will need to reverse it soon.

Cheers
BW