U.S. shale production boost spells trouble for OPEC   

23 November 2018 : With crude prices continuing the worrying slide seen throughout October, the threat of a continued ramp up in U.S. oil production could drive prices down further. Notably, WTI Crude hit $54.58/bbl, as ongoing fears of a precarious trade climate and the potential impact on global economic growth continues to fuel bearish sentiment. Meanwhile, U.S. shale producers are gearing up for an increase in overall capacity in 2019, as three new pipelines – the Cactus II, Enterprise and EPIC – are set to come online. 

Analysts recall that the Saudi oil minister earlier this month mentioned the need for OPEC to reduce supply by about 1 mb/d in 2019 to account for the increase in U.S. production, as lower output from Venezuela and Iran were not enough to offset the supply boost. Analysts foresee continued volatility in oil prices leading up to 2019, with a continued tilt towards the downside given notable headwinds in the supply-demand dynamics. 

Reporting for EasyKobo on Friday , 23 November 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited

Copyright @ 2010-2019 Easykobo.com by Naija infotech & solar energy ltd. All rights reserved