Just following on from my previous post. I have just read an analysis from John Mauldin's publishing house (he is a Texan and knows about oil) that talks about shale in the States.
Excerpt from his (freely available) weekly letter:
So, my thoughts are that with the potential for RISING supply in the US at least for the next few - several months there is no need to rush in to catch the falling knife yet. Whilst POO has bounced from massively oversold levels overnight this is possibly a dead cat bounce:
The Saudi's have a plan and that plan is nowhere near completion. Sticking to the quality oiler's or (IMO) better yet sitting on the sidelines waiting for better buying opportunities is a good course of action.
Cheers
John
DLS Price at posting:
71.5¢ Sentiment: None Disclosure: Not Held
STO Price at posting:
$7.58 Sentiment: None Disclosure: Not Held
WPL Price at posting:
$35.50 Sentiment: None Disclosure: Not Held
