This is why bounces in the price of oil will be shallow
When the price goes up, the taps are turned
The New York Times writes about how oil companies are essentially storing oil in the ground.
"More than 4,000 drilled oil and natural gas wells across the country producing nothing, but ready to be tapped quickly," they write.
When people envision bottoms, they often expect some kind of capitulation and then a long, sustained bounce but oil will be skidding along at low levels for years.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.