OPEC vs Shale: The Oil Saga Continues

5 Jan 2018   OPEC

The continuous rise in U.S. shale production last year offset part of the OPEC–Russia production cuts and capped oil price gains. Supported by the global inventory drawdown and geopolitical woes, however, oil prices rose steadily in the fourth quarter of 2017 to end the year at above $60 per barrel WTI and $66 per barrel Brent. As we roll into 2018, the higher oil prices continue to drive increased U.S. shale production, and set the stage for yet another year of the OPEC-shale tug-of-war that will influence the price of oil. According to analysts, the $60-plus WTI price isn’t sustainable in the near term, barring geopolitical risks that could push prices up. The U.S. Energy Information Administration (EIA) expects U.S. crude oil production to have averaged 9.2 million bpd for all of last year. It expects U.S. crude oil production to average an all-time high of 10.0 million bpd […]

Comments are closed.