RE:RE:Oil price
Very few Companies, or Countries can simply shut down production and wait for more profitable pricing to re emerge. Countries have to pay for infrastructure and social programs, Companies have to report quarterly and, are unable to have the luxury that longer time horizons would grant, and there is more pressure now that most of the high dollar Hedges have expired. Plus, the elephant in the room (actually there's a herd of them in the room), will be the Oct Bank evaluations and LOCs and junk bonds that will be slashed due to loss of reserve booking due to unprofitability of those reserves that were previously profitable. Everyone has an opinion, some will be right some wrong, but it sure is hard not envisioning oil still dropping or hanging just under $40 for the short term/intermediate term. Prices will rebound, but the whole World will have to have started another bull market for there to be consistent upwards demand, and the banks will need to keep the taps open on cheap money, which seems contrary to the World entering a bullish growth period.