Eshmun - Much as SXY longs might like to see the US continuing to cut production, it is not safe to extrapolate like that. Oil production depends on price. As T Boone Pickens said, the cure for a high oil price is .. a high oil price. The equivalent applies to low oil prices of course. So the decline you see now in US oil production was caused by a low oil price and will lead to a higher oil price and hence to higher production and hence to a lower price, etc ad infinitum.
SXY Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
