• 2 minutes Oil prices going down
  • 11 minutes China & India in talks to form anti-OPEC
  • 16 minutes When will oil demand start declining due to EVs?
  • 2 mins Oil prices going down
  • 2 hours We Need A Lasting Solution To The Lies Told By Big Oil and API
  • 2 hours Another WTH? Example of Cheap Renewables
  • 2 days Bullish and bearish outlook for oil
  • 2 days Rolls Royce shedding 4,600 jobs
  • 24 hours Trump Hits China With Tariffs On $50 Billion Of Goods
  • 1 day When will oil demand start declining due to EVs?
  • 2 hours The Wonderful U.S. Oil Trade Deficit with Canada
  • 1 day Russia's Rosneft 'Comfortable' With $70-$80 Oil Ahead of OPEC Talks
  • 53 mins What If Canada Had Wind and Not Oilsands?
  • 6 hours China & India in talks to form anti-OPEC
  • 2 days U.S. Cars Will No Longer Need 55mpg Fuel Efficiency By 2025.
  • 59 mins The Permian Mystery
  • 2 days Epic Fail as Solar Crashes and Wind Refuses to Blow
  • 20 hours Gazprom Exports to EU Hit Record
  • 2 days OPEC soap opera daily update
Alt Text

Energy Efficiency Adds Value To Home Prices

A new study has suggested…

Alt Text

Saudi Aramco Looks To Double Refining Capacity

Saudi Aramco looks to almost…

Alt Text

Did OPEC Need To Cut Oil Output At All?

Global oil demand continues to…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Is Oil About To Collapse?

Shale

When writing about markets, here and elsewhere, I usually try to avoid the temptation to write sensational things. Words like “collapse” and “crash”, or “surge” and “explode” attract clicks, which in turn often translates to cash for a writer, but major events like that are rare. That is all fine and logical, but…WTI really does look like it is about to collapse.

Let’s be clear, I am not necessarily talking about a return to the sub-$30 of the beginning of 2016 here, but a return to the more recent lows around $42 before too long is distinctly possible, and if that happens, who knows where we go from there? There are, as I have noted in the past, reasons to believe that the long-term path of oil is still upward, but more immediately there is one dominant factor that keeps adding downward pressure, large and still growing supply from North American shale producers.

Some say, as in this FT piece, that there are signs that U.S. shale production has peaked, but then that was also supposed to be the case in 2015 and 2016. I am sure that if I could bother to go back further I would find that the same thing was said in previous years too. The fact is though, that as the EIA chart below shows, after dropping off as price declined at earlier this year, U.S. crude production is growing again and will be higher this year than last and is expected to be higher again in 2018.

(Click to enlarge)

(Click…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News