Shell President, John Hofmeister gave an interview to CNBC in Houston on what is driving the continued low oil price. Current oil production coming on line exceeds the demand rate. He predicts that by July-August the decline rate and production growth will reach equilibrium. By June the Hedge funds will began to buy and horde oil and set the prices for the rest of 2015 with potential short falls later in 2015. When will crude oil prices reach equilibrium? Hofmeister says mid-2015. In the U.S. companies are into a ruthless cost cutting mode, laying off employees and halting drilling - an overreaction that may ultimately cause more problems.