It all depends on oil recovery and how fast. Yesterdays relaease was a glimpse to the past where solid hedges were in place. As those hedges run off the books then the real heat is turned up.
So its about timing and how it sets up for the next few qtrs- to me yesterdays report was insignificant.
Not how much you pull out of the ground, it is what it costs and what you can get for it !
Its why oil continues to go down and will until U.S. production is cut by a wide margin- which is probably summer. No place for storage !
Throw Iran into the equation and it really gets messy.
I'm waiting for capitulation when oil goes down 10-15% in a day and recovers- then I'm in.