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US Shale on the move again and the New Year dramatically changes oil prices

December 1, 2017 10:27 am


Scott Darling, head of regional oil and gas at JPMorgan, discusses the extension of OPEC’s production cuts, and where he sees prices heading. He speaks on “Bloomberg Daybreak: Asia.”

A deal has been struck at OPEC to  extend production curbs until end of 2018, but the US reports a surge in domestic production which in September reached a high of 9.48 million barrels a day, the 4th highest monthly levels since the 1970s.  So will the production cuts be blunted?

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“At $60 WTI prices, where we are now today, shale could produce 1 million barrels per day into 2018 and beyond,” says Darling.

“We are seeing a gradual rebalancing of the oil markets, but after the euphoria of the cuts, prices should start to go down again at the start of the New Year.”

Watch: Oil at $58 in fear trade but expect it to drop to low $40s soon

Darling said that Shale oil production won’t be stalled unless oil prices reaches the $30s but a recent study has shown that there are more productivity gains to be had in shale.

 

 


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By AMEinfo Staff
AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.