HAVE YOU HUGGED A FRACKER TODAY? Here’s why U.S. oil data should rattle OPEC nerves.
Members of the Organization of the Petroleum Exporting Countries have been concerned that rising U.S. crude output will offset OPEC-led efforts to ease a glut of global crude and raise oil prices.
“Market participants must begin to wonder how sustainable some of this production growth will be as recent trends, if persistent, could disrupt the narrative of a swift market rebalance” between global supply and demand, said Starkey.
Saudi Arabia’s energy minister recently stated that the Saudis have borne “most of the production cuts and requested more cooperation,” noted Macaluso.
Saudi Arabia’s Energy Minister Khalid al-Falih said at the annual CERAWeek conference this week that he was surprised by the speed at which operators have returned to U.S. shale basins, according to The Wall Street Journal. But he said that his country welcomes shale investments because more spending will be needed to meet demand in the coming years.
al-Falih would probably prefer that it were just Saudi wells supplying the increased demand.