RE:RE:For Every Bull Article there is a Bear Article
Its a horrible article all around. It does not factor in that most oil companies are in the red, have low cash on hand, hawkish banks don't want to loan them more money and that they have to spend A LOT of money just to keep extracting oil at whatever rate they are doing right now. Since companies are operating in the red they have cut Capex significantly and since most wells or mines take weeks or months to get back online there will be a significant delay in offer-demand and thus a reduction of oil in the market. All this talk about US shale is exaggerated: granted they can start producing faster than other types of oil industries however: who wants to stick his neck out first? Understandably the shale producers are gun shy when it comes to start producing in a borderline profitable market (ie 50$). Who wants to open shop and 51$ and then see oil go back to 45$?