Energy Prospectus

Morgan Stanley: "Macro fundamentals continue to improve. The fast pace of E&P spending declines is now having a clear negative impact on oil supply growth in the US, with well completions meaningfully below the levels required to hold US production flat. We further expect a longer-lasting impact on “non-US non-OPEC” supply in 2017/18 time frame to trump the resumption in US oil supply as the US rig count recovers. We reiterate our view that $90 Brent is the LT average price needed for incremental supply and demand to align, and the longer low oil prices persist, the higher the risk for oil to overshoot to the upside."

It is AMAZING how closely this compares with what happened in the 2008-2009 oil prices cycle. After the gang on Wall Streets milks the downside for as long as they can, they flip and start making comments like the one above.

Per the EIA website: http://www.eia.gov/dnav/pet/pet_crd_crp ... mbbl_m.htm

288,934,000 < December, 2014 U.S. crude oil production (9,320,452 bbls per day)
284,737,000 < January, 2015 U.S. crude oil production (9,185,065 bbls per day)
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4,200,000 = Decline in one month
/ 31 days
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135,484 = U.S crude oil production declined this much per day from December to January.

One month is not a trend, but this is quite a drop.

Read: http://www.artberman.com/u-s-oil-produc ... n-january/ and be sure to read all the comments at the bottom.