RE:RE:Oil to drop to the $30.00 barrell rangeThe black sludge is too superfluous. Short this bloated pig with RECKLESS ABANDON
AEA200X wrote: The storage capacity story is temporary story, up to end of Q2, that will blow away. Focusing on that is shortsighted. Apart from the fact that there are seasonal factors that play a big role. If inventories were going up in the summer then it would be serious. Reduction of shale production growth and the posibility of an eventual decline is much more important. If prices do drop to 30 it would acelerate a drop in shale production. That kind of drop in prices can only be temporary. The question is whether PRE can survive this year, and with the 500+ million in cash and having Rubiales (which is clearly there lowest cost operation) in 2015 they will make it. If prices stay below 55 in 2016 then PRE is prob blown. As was just pointed out the WTI strip already points to 50s by year end. Hence 60 / bbl in 2016 is almost assured. Current share Price had PRE broke in default in the tomb already. With their bonds maturing in 2019 its a risky play but they very well might make it.