Mike Filloon Is Exactly Right -- October 3, 2016

Link over at Seeking Alpha. Summary:

• OPEC thought it could destroy shale production in the United States, but several mistakes led it to the current understanding with other OPEC members
• The Saudis know that this will buy more time for OPEC producers, by placing a floor in oil prices until we get closer to a supply/demand balance
• The supply glut is not going away, and we should get use to lower for longer as there are many producers capable of economic returns below $60/bbl
• The Saudis continue to control OPEC, but at this point little else

For more on the "OPEC freeze," click here.