OPEC Not Worried about US Shale

The head of the Organization of Petroleum Exporting Countries (OPEC) has denied the group’s members are playing a game of chicken with oil U.S. producers.

“That’s 100 percent false,” Secretary General Abdalla Salem el-Badri told CNBC when asked whether the group was testing the nerve of the U.S. oil industry, adding that American oil production will likely drop from current projected levels.

“I think the American press is exaggerating this quantity,” he said. “That’s the message I am trying to get across: please be cool, don’t exaggerate the production of tight oil (in North America) because it will decline.”

His comments come as the group prepares to meet to agree a cut in production to stem the slide in oil prices.

OPEC members are due to meet on Thursday, and a number of analysts and strategists told CNBC they expected the group to cut production by up to 1.5 million barrels a day to help re-balance the market and lift oil prices from their four-year lows.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza