All content in this website is sourced legitimately

Page No: 1
Price of oil to fall: OPEC seeks collusion with US shale players
Apr 17: Is it possible that US shale oil producers and OPEC players can join hands to keep prices high?
8The OPEC seems to increasingly worried about rising shale output and loss of market share as they cut output to keep prices high.
8The prospect of an alliance has risen as some of the same companies that are working in shale are the same companies working in OPEC.
8But the problem is US laws strictly disallows orchestrating supply restrictions in order to affect prices.
8Meanwhile latest estimates carried here on this website seem to point to a supply overhand emerging in the later part of 2018 and 2019 continuing up to 2025 despite an upswing in demand.
8This is because US shale output is likely to rise to eat up excess demand. US output is turning out to be far more elastic than OPEC had imagined.
8This will keep prices under the lid.
8Saudi Arabia meanwhile seems to be in a tight spot. The fiscal breakeven is at $74/bbl, higher than current prices. The country has already sharply cut down public expenditure and it is now a question of garnering more market share or settling for a higher price for crude.
Click on Reports for more


Back  |  Top