There was some positive data out on Friday saying the US oil production levels have been cut back (another drop in rig count) but the market was extremely bearish this week – maybe this is a short run correction or consolidation because we have seen such a strong rally off the bottom?

China is a big push in this bearishness – it is slowing down even more. We also have the Iran deal that looks like it will come thru in March. If the oil embargo is lifted we will see more supply there and that will add to the glut.