Oily Operations

Before oil prices can rise, production must decline and/or demand must rise and demand won’t increase anytime soon with Europe, Japan and Brazil weak, Russia in recession and China slowing. That means supply must fall and that will probably require still cheaper oil. Recent research suggests that even at $40/bbl, only 1.6% of world oil supply faces negative cash flow and the glut is about twice that big. Maybe $37/bbl?