Quote:
Originally Posted by Slava
Sure but you're basing your long term projection on an entirely short term reaction. Sure, it could be the long term that happens, or it could be that prices stabilize around here, and producers adjust. That would likely see prices rise from here again.
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I'm not sure I even understand your argument.
How are producers going to adjust and how are prices going to rise?
Here is the current situation: there is a glut of global oil, driving prices to lows we haven't seen since the great recession. We've got a serious supply side problem with the dominant producer continuing to release massive amounts of oil to market, further pushing down the price of oil.