Oil market is significantly oversupplied, says CIBC's Rebecca Babin

so for most of the US shale producers fifty five is where you start to see some barrels start to be uneconomical it accelerates drastically as you get to fifty and below the supply impacts at this price point and where the curve is is actually not extreme we might see a hundred

thousand fifty to a hundred thousand barrels a day of production start to come off but the key here and i think this is a really important point is US producers continue to get more efficient and be able to drive down their breakevens we've expected crude to start to come off

we've seen rig counts come down this year pretty pretty dramatically but production hasn't responded they're drilling longer laterals they're getting more efficient so as we think about those break even points just continue to remember that we've thought they were going to

respond in the past and they've been very resilient so we are at that tipping point but i would say maybe we need to shade that tipping point a couple bucks lower due to efficiencies so so it's something to watch but i don't bet against US producers cutting back dramatically at

this crude strip i think that takes place five bucks lower from here