The market’s initial reaction on Monday and its losses of about $7 since the beginning of March indicate that OPEC members can’t use verbal intervention to lift prices as easily as they did last year.
Despite shale’s resurgence, there are questions about how healthy the U.S. E&P sector is in light of higher price levels since November of last year.
Although the world is still in the midst of a seemingly perpetual glut, does a supply gap loom? Is peak oil demand imminent? Why is OPEC praising shale and meeting with hedge funds?
The U.S. oil and gas sector is very upbeat with prices above $50 per barrel, but one CEO warns that the industry must manage its growth or the market could collapse again.
Speaking at a major conference in Houston, the Saudi Energy Minister said there is cause for “cautious optimism” for the industry but warned against “irrational exuberance.”
The biggest questions at CERAWeek this year is whether OPEC and its non-OPEC counterparts will recommit to throttling back in May and whether U.S. shale can fully offset these cuts and push down prices.
What gets overlooked sometimes in the discussion on U.S. crude exports is that the country is still importing more than 8 million barrels per day.
SAFE's Fact Pack summary for Q4 looks at recent trends in oil market fundamentals and transportation while also focusing on how American innovation can help job growth in the transportation and domestic energy sectors, a key development that will lessen the country’s dependence on OPEC imports.
Nothing will change materially in the oil market until there’s a significant stock draw, a development that appears doubtful, which could ultimately force OPEC to change strategy once again.
The OPEC commission would examine whether the cartel’s behavior is designed to disadvantage U.S. oil producers and secure market power through anti-competitive behavior.