GS a while back projected oil may drop to $ 28.00.
It may very well happen. As companies cut costs oil workers may have to choose between $ 15.00 an hour at a fast food place or $ 15.00 an hour on an oil rig.
If oil goes that low oil may not come back past $ 40.00.
As long as the OPEC folks are pumping at maximum levels we may not see plus $ 40.00 oil again.
The only thing that may change the over supply of oil is if ISIS takes over or takes out one or more of the oil producing governments.
My feeling is current upticks are short covering. There won't be any big price movement until new long term contracts are signed putting idle rigs to work. Another important moment would be if Rosneft starts talking with SDRL management again about Artic offshore work and possible on shore rig operation.
Brazil's government may be one of the top 10 most corrupt in 2nd tier nations. Probably nothing was agreed to without a bribe. I'm guessing it would be hard to prove though. Any payments would have been called something not resembling a bribe.
No contracts for next nine months but minor extensions. Stock floats between $ .60 and $1.00. Speculation continues about merger back with SeaDrill parent. Third quarter 2016 - potential for 1-3 new contracts in North Sea area - possibly from Statoil.
Sanctions off July 2016. New talks with Russia. Contracts uncertain.