WTI is back in the upper-$50s per barrel, and OPEC is on the verge of extending its production limits well into next year. The fear for OPEC, and other oil bulls, is that this risks sparking another wave of U.S. shale supply, sending oil prices right back down to where they came from. But what if U.S. shale fails to keep up with soaring demand? That’s the conclusion from Morgan Stanley—a prediction that flies in the face of conventional wisdom. When OPEC signed its deal a year ago to limit production, oil prices moved up into the $50s per barrel, and over the next 12 months, the U.S. brought about 1 million barrels per day (mb/d) back online. With crude prices back at similar heights, shouldn’t another dose of shale production be a sure thing? Morgan Stanley says that while U.S. shale drillers could add new production, they won’t […]