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 [...]

Merryn

Claim 12 issues of MoneyWeek (plus much more) for just £12!

Let MoneyWeek show you how to profit, whatever the outcome of the upcoming general election.

Start your no-obligation trial today and get up to speed on:

  • The latest shifts in the economy…
  • The ongoing Brexit negotiations…
  • The new tax rules…
  • Trump’s protectionist policies…

Plus lots more.

We’ll show you what it all means for your money.

Plus, the moment you begin your trial, we’ll rush you over THREE free investment reports:

‘How to escape the most hated tax in Britain’: Inheritance tax hits many unsuspecting families. Our report tells how to pass on up to £2m of your money to your family without the taxman getting a look in.

‘How to profit from a Trump presidency’: The election of Donald Trump was a watershed moment for the US economy. This report details the sectors our analysts think will boom from Trump’s premiership, and gives specific investments you can buy to profit.

‘Best shares to watch in 2017’: Includes the transcript from our roundtable panel of investment professionals – and 12 tips they’re currently tipping. The report also analyses key assets, including property, oil and the countries whose stock markets currently offer the most value.