$Occidental(OXY)$ I believe what the analyst is saying is that the drop has more to do with trading vehicles in oil such as options and other derivatives than it does with real Supply and Demand, Going w/ that as truth, the price of oil can be expected to rise up fast and furious once the deleveraging of oil related synthetic instruments is completed by the banking sector. In the US alone the banks will limit credit to highly leveraged under capitalized drillers who need a much higher price of oil to be profitable, unlike APA or OXY who make money above $40 bbl. This will limit supply at the margins and that can make a big difference several months down the road.
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