Free Riders...*

After months of relative price stability the floodgates of selling opened wide. Crude oil production in the United States rebounding to nearly 9.1 million barrels per day. 

The Saudi oil minister explicitly said that the accord adherents would not abide "free-riders," referenced the shale producers.

In response, Saudi Arabia announced that it would, once again, supply full contract volumes of crude oil to its Asian customers, and it has aggressively discounted its pricing. 

U.S. oil inventory levels will only grow further as prices stabilize and the companies adjusted the cost of production. 

Prices for WTI will likely fall steadily. While it is painful to undertake a price war, you can bet the lowest cost producers will be the last ones standing but damaged greatly. A new reality is happening.  Just a thought.