OPEC Won’t Choke Off U.S. Oil Production Growth

U.S. oil production could increase next year to levels not seen since the 1970s, despite OPEC’s efforts to muscle out American shale producers.

While U.S. oil production is predicted to rise by another million barrels a day during 2015 from the current 9 million barrels a day, forecasts are coming down on expectations that OPEC’s unwillingness to cut production will keep a lid on prices well into next year. Lower prices limit new drilling and hit high-cost wells first.

Saudi Arabia may continue to stay away from cuts even if prices continue to move lower: OPEC’s biggest producer now expects Brent crude to stabilize at around $60 a barrel, which is a level the Saudis could withstand, according to a Dow Jones report Wednesday.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.