http://www.wsj.com/articles/u-s-shale-producers-cut-back-production-amid-global-oil-glut-1456795120Expecting a sharper decline in production than what we’ve seen so far:
“So after years of boosting oil and gas flows across Oklahoma, Texas and North Dakota, Continental Resources Inc., Devon Energy Corp. and Marathon Oil Corp. say they plan to pull roughly 10% less from the ground in 2016 than they did last year. EOG Resources Inc. joined the chorus Friday, telling investors it has curbed production and expects to pump 5% less oil this year.”
And this:
“IHS, the consulting firm that held the energy gathering in Houston last week, is forecasting that U.S. oil output could fall from more than 9 million barrels a day to as little as 8.3 million barrels a day by this summer.”
The article is almost suggesting a trade going forward: sell strangles… Sell puts because production cutbacks will help support prices and sell calls because production will come back quickly with prices up in the $40 area… Some, however, are not convinced a bottom is in place yet…
Here is the link: http://www.wsj.com/articles/u-s-shale-producers-cut-back-production-amid-global-oil-glut-1456795120
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