It certainly looks like classic capitulation in the O/G sector over the last few days. The classic signs we are near a bottom is when people have to do a "gut check" to own it and give up. This last week , post earnings, it certainly sounded like THAT was the course of action when I read that some regular posters who have been here awhile, capitulated. The weak hands are out in my opinion. They gave up over time , but this week , in particular, took out the strongest of the weak hands.
If the sanctions of Iran are lifted and oil prices fall as much as predicted SD will drop like a rock. Then you will see capitulation and when it settles about $3 a share maybe we will see a buyout for about $5.50 and be damn glad to get it.
If sanctions are lifted, as the press is alluding to, absent a complete and transparent disarmament by Iran, Israel will ignite in disgust. Oil may drop for awhile, but the Middle East is still a complex powder keg of political unrest.