There are indications surfacing that the current slide in crude oil prices is reaching an end. That will not translate into a hefty short-term rise, but it will require that the most imbalanced ratio between shorts and long positions witnessed in more than five years will have to be addressed.
That translates into some appreciable short covering and that will, in turn, give some support for a price improvement.
In the interim, several vulnerable production companies are caught in the middle of low prices and rising debt costs. Such a situation usually provides some profitable option plays.