RE:In 8 or 10 weeksoilismoney1 wrote: In 8 or 10 weeks this $28 dollar oil and garbal will all be behind us.
Enjoy the opportunity, it might be 7 or 8 years until you get the next chance.
It may take slightly longer than that. I see things getting worse before they get better. 11M barrel build is massive! And we saw an increase in price! This is due to the noise about OPEC and non-OPEC producers potentially cooperating to reduce production. The market reacts so harshly to the slightest rumours these days and ignores the fundamentals....such as an 11M barrel increase in crude inventories in a week! Iran is ready to ship a large amount of crude and ramp up production. This will initially outpace the growth in demand and reduction in non-OPEC production. I believe we will see the bottom in Q2 when refineries ramp up and increase output, non-opec production declines further and seasonal demand increase catch up to world supply. Then, we will begin a slow ascent. When the bottom is confirmed and inventories begin to consistently decline, we will see big money re-enter the sector and propel the price higher, possibly to a year end price in the $45-$50 range.