RE:bull market for oil there is no question oil will be higher by 2017 than it is today or is there?
there are many opinions out there about oil and future prices, and they all make some sense to a degree and they are all based on assumptions.
the trick is deciding which assumptions are more likley than others.
BEARISH OPINIONS FOR OIL PRICES
1-brexit and possible Ameriexit will have a dampening effect on global growth which will imply lower demand for oil and oil products/
2-oil and gas and distilates stockpiles are so high that it will take until 2017 -h2 to work through them and this will keep pressure on oil prices
3-USA producers have started to increase drill rigs again and production will stabalize in the next 3-6 months and then start to increase again in 2017.
4-Iran, Iraq, lybia, russia, and the rest of OPEC will keep increasing drilling and produciton into an already flooded market.
BULLISH OPINIONS FOR OIL
1-Capital reductions for 2016 and 2017 will keep oil produciton growth well within demand and create a balanced market
2-many marginal oil wells are being shut-in because they are losing money
3-there have been a large number of producers declare bankrupcty and are being restructured which will reduce supply over time.
4-many opec countries can't survive at sub 30 or even sub 40 prices and need much higher prices to balance their budgets
4-many oil companies are selling assets to stay alive and or issuing more equity because the debt markets have dried up.
I don't know which will transpire and which will won't or maybe all will transpire over a certain period of time, so we get down and up and down and up and down and up.
how will these scenarios affect MEG???