Watch: US crosses oil production threshold and predictions for crude prices
Neuberger Berman Managing Director Middle East and Africa Jahangir Aka discusses the price and production of crude oil, and talks about OPEC. He speaks on “Bloomberg Markets: Middle East.”
As US oil production passes 10 million barrels per day, is that keeping OPEC on edge?
“As we’ve seen over the last 12-18 months, OPEC demonstrated it can work together in a cohesive manner after concerns at one point that they weren’t,” said Aka.
“But they have proven this team work, pulling back on supplies, and helping raise the prices of oil.”
He said the oil story today is about the excitement over global growth which is looking good, and with it comes a demand for oil and commodities but also an inflation risk for 2018.
“US Shale producers have also demonstrated their ability to invest any time oil prices are in the $40-$50 range, and now at $70, the inventives are bigger,” said Aka.
“Can we stabilize oil prices at this level?” asked aka. “The $40-$60 range is feeling now like a $60-$80.”