Oil’s OPEC-Driven Gain Wiped Out as Shale Boom Offsets Cuts

5 May 2017   OPEC, Prices

American output has longest run of gains in more than 4 years Commodities tumble amid concern Chinese consumption to weaken The oil rally following OPEC’s deal has disappeared. Futures on both sides of the Atlantic dropped to their lowest since late November on growing signs that the group’s production cuts are failing to clear a surplus of crude. Oil stocks felt the pinch, with the S&P Oil & Gas Exploration and Production Index slumping as much as 4.9 percent Thursday to the lowest since August. “Evidence is mounting that the OPEC agreement, and the market’s reaction, were much ado about nothing,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by telephone. U.S. crude output has risen to the highest since August 2015 as shale drillers add rigs every week. In response, the Organization of Petroleum Exporting Countries is likely […]

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