The OVX Tells Us that OPEC Will Continue to Backstop the Market

Crude oil prices have barely moved compared to March of 2015, and while prices have probed the high $20’s as well as the mid-60’s, it appears that we have found equilibrium.  OPEC’s first reaction to high prices was to flush U.S. producers out of business, with the hopes that the operational costs, would make a sustainable business unattainable.  If they are wrong, the only likely long term…