OPEC’s Diminishing Impact on Oil Pricing
Tuesday, September 12th, 2017 and is filed under Oil & Gas
Whereas OPEC used to be firmly in the driver’s seat when it came to controlling access to oil (and manipulating pricing), the rise in US shale production is literally changing the world.
The most recent surge in US production growth occurs ahead of OPEC talks to consider extending or ending production cuts originally enacted in Fall 2016. From mid-2014 through OPEC’s decision to curtail production in November 2016, oil pricing was in seeming free-fall, dipping at times below the $30 per barrel mark. Despite low oil pricing’s effect on OPEC kingpin Saudi Arabia’s purse, according to Investopedia, “when faced with a decision between letting prices continue to drop or ceding market share by cutting production in an effort to send prices upward again, Saudi Arabia kept its production stable, deciding that low oil prices offered more of a long-term benefit than giving up market share.”
Read the full article: U.S. Shale Production on Record Setting Pace.