I think it's just the negative attitude of the market towards increasing US production. Even if OPEC extends their cuts, the US producers are signalling increased rig counts and production that are not positive for oil prices.
US producers will keep drilling where they can make money, even at $47/barrel.
I read an article today that commented that the easy money policies of the FED are partially to blame. Oil companies have never had such cheap money AND easy access to credit. This has lead to a boom in US production that threatens price stability in oil prices.
Likewise the article pointed out that the money printing and resulting near zero interest rates have caused a boom in tractor sales to farmers. The increased productivity has lead to higher production and lower prices for many commodities. This is another example of the unintended consequences of our all knowing, all interfering government. Misallocation of capital was cited as the main cause of the fall of Communism. What do you call zero interest rates???
One of these days, someone is going to pull the curtain back and Alfred E Neuman will reveal himself as the wizard pulling the levers of our government bureaucracy!
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