In a written response to Reuters, Rosneft stated, “It became evident that U.S. shale oil output has become and will remain a new global oil price regulator for the foreseeable future.
“There are significant risks the (OPEC-led) deal won’t be extended partially because of the main participants, but also because of the output dynamics in the United States, which will not want to join any deals in the foreseeable future.”
Rosneft went on to speculate that “We think that in the long-term global oil demand dynamics and reduced investment during the period of ultra low prices will balance the market, but that the risk of a price war resuming remains.”
Rosneft noted the only guaranteed way to balance the market is for all producers to limit supplies – even though Russia itself has yet to make good on its pledged cuts.
Have you hugged a fracker today?