I've only seen reports on the actual report.
Bloomberg did a fairly simple cover of it as per link.
http://www.bloomberg.com/news/artic...crashed-and-why-lower-prices-are-here-to-stay
I would suggest the over supply that is to come has been completely underestimated and the pullback in North American production over estimated.
The real issue of storage is yet to hit.
So much oil is going into storage & being sold forward taking advantage of the forward curve.
This storage will get filled & someone made the comment that the US would build the storage if need be.
Quite frankly that's not practical & certainly wouldn't help the price overall if they did, but they can't anyway.
The surplus is running at around 8M bbls per week including crude & product & then you have an even biiger build outside of the US.
Once that storage is at capacity & storage rates will obviously rise as well then oil will have to be discounted.
After re-reading all of this I have convinced myself to re-enter my short! ;-)
I'm not sure how Macquarie can say that STO have a small exposure to poo.
BHP are complaining that re the link of their LNG to oil now the prices have dropped of course.
They are pushing for a regional gas contract.
I would assume if BHP's LNG is linked to poo so is STO's.
Thoughts anyone on that?
(20min delay)