broker phoning insto clients to sell , page-17

An earlier comment made good sense; if production is out for three months, all that happens is that cash flow is delayed. With oil price moving higher, may not be all that bad. A few months ago, two year futures were trading $6 over spot. There would have been justification for any oil producer shutting down production and deferring cash flow (and selling fwd); There are of course banking requirements if they have debt to repay but the important things to note is that the oil is still there ready to be produced when things return to normal