Squidy,It just takes a bit of time to sort the new balance out....

Squidy,

It just takes a bit of time to sort the new balance out. There's a timelag in the system, and this downturn hit so suddenly that we have to wait for the OPEC cuts to work through to the refineries etc.

Also non OPEC people more likely to defer workovers, infill drilling etc than to turn the taps off. Obviously not likely to defer what they have already signed contracts to do etc. Will work on the flip side even if there is no upturn in demand, as supply drops faster than expected.

Of course with OPEC having an available capacity surplus the price rise in the short term likely to be limited to the upper range OPEC preference imo.

I am not selling out of oil stocks at this stage!

EL