RE:sentiment is winningI don't think oil can trade at 80 until a serious correction that has to happe first.
Production is getting to high in USA because it is too profitable not to produce hard....both oil and gas production is very strong in the USA and only is getting stronger. Liquids wise counting condy and NGL's...USA is at an all time production high.
All OPEC has done by doing three cuts in like last 7 months is delay the date for the correction that has to happen outside of OPEC. Even brazil is pumping oil hard.
Saudi exports are down to like 66k a day to USA. Russia is zero. USA is in control.
So is China's position. China is close to 1 billion in its strategic reserve...it can import alot less if it ever wants to make a point.
Any increase even small per country in oil supply is bad right now.
Canada is running enough oil rigs right now to still be increasing abit each month.
Oil prices are always hard to predict...I wont predict a price oil drops too but oil becomes more interesting after the correction happens.
Even at 67 bucks USA companies will continue running rigs...price prob levels off at whatever price shale starts too sruggle more.