Opec can’t tame US shale oil producers

“It was all so simple,” said Julian Lee on Bloomberg.In 2014, the oil exporters’ cartel, Opec, decided to flood the market in order to put US shale drillers out of business and thus preserve market share. Late last year, following a fall in US production, it decided to cut output in order to bolster prices again.

But it turns out shale “is the wild horse Opec can’t tame”. Saudi Arabia, Opec’s key producer, said when it introduced the supply curbs that it didn’t expect much of a response from US production in 2017 [...]