Tuesday, September 15, 2015

OPEC Is Winning The Oil Price War

Lucy Nicholson/Reuters

OilPrice.com: OPEC Is Winning The Price War Says IEA

Oil markets may not balance until late 2016, but supply is finally contracting in a big way.

Early last week the EIA confirmed that U.S. oil production was down sharply since peaking in April at 9.6 million barrels per day (mb/d). The agency estimates that U.S. output fell by 140,000 barrels per day in August, a steeper decline than in previous months. In its latest weekly estimate (which is less accurate than monthly retrospective estimates), U.S. oil production is now down to just 9.1 mb/d.

On September 11, the Paris-based International Energy Agency (IEA) added its voice to the debate with its latest monthly Oil Market Report. The IEA believes that the U.S. could see a loss of 400,000 barrels per day in 2016.

WNU Editor: They may won this battle .... but I suspect that they are also now realizing that the days of $100/barrel prices may not return for a very long time.

More News On OPEC's Price War With U.S. Shale

Gulf Oil Producers Ramp Up Price War as China, Supply Concerns Persist -- WSJ
Opec has victory in its sights in oil price war with US shale -- The Telegraph
Opec has victory in its sights in oil worth warfare with US shale -- The Times
OPEC: The US shale boom is over -- Business Insider
Can OPEC Declare Victory In Price War Vs. U.S. Shale? -- Gillian Rich, Investor's Business Daily

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