"Why oil may not get the cure it needs: Analyst"

As the old-timers say, "The cure for low prices is low prices".
Front futures $42.63 up 13 cents.
From CNBC via Yahoo:

An expected drop in crude prices to $30 to $40 a barrel this fall might not be enough to balance global oil markets, IHS Energy's Jamie Webster told CNBC on Monday.

U.S. production needs to fall by as much as 1 million barrels per day (bpd) for the U.S. to balance markets, according to IHS. But such a move would require U.S. crude to trade at or below $45 a barrel for two consecutive quarters, and Webster doesn't see that happening. 

"The problem with this is the market, the financial guys, are still quite bullish, and I'm not sure they're going to allow it to go for two full quarters to give us the kind of cure we need in order to balance this market," he told CNBC's "Squawk Box."...MORE 

I guessing our readers have already seen last week's Bloomberg story "Oil at $30 No Problem for Some Bakken Drillers Cutting Costs" but I hadn't linked to it.