for Low Oil Prices
Amid weaker demand and chronic oversupply, U.S. shale is facing fundamental questions about its longevity.
If U.S. shale does not live up to market expectations, the oil market could tighten up by more than anticipated.
OPEC+ might have to extend its cuts when the group meets next month, but the pain in the U.S. shale industry may make its long-term task easier.
Chesapeake Energy's financial woes suggest the shale revolution is running on fumes.
After multiple delays, Saudi Aramco is moving forward with its IPO - but questions surround the listing amid persistent low oil prices, Saudi political issues, and fallout from the Abqaiq attack.
Slowing growth in both Persian Gulf economies and U.S. oil production gives OPEC+ plenty to think about when they discuss output cuts in early December.
Taken together, the long run of explosive U.S. shale growth is likely coming to an end.
The immediate impact of Abqaiq may have been minor, but the long-term lessons from this incident are bound to become more clear with time.
The current stability is relatively rare for the oil market, which is prone to rampant volatility for numerous reasons. When the market eventually breaks out, it could do so aggressively.
Independent producers are struggling to hit output targets at current price levels while the majors are focusing on becoming more efficient.