OPEC vs US shale is biggest oil risk of 2017
The biggest oil market risk for 2017 is the prospect of a market share war — or at least a showdown — between OPEC and U.S. shale drillers, said Kate Richard, CEO of energy investment firm Warwick Energy.
Richard offered her view after U.S. crude futures ended Tuesday’s trading lower for a seventh straight session, hitting their weakest closing level since November.
OPEC’s effort to draw down brimming global crude inventories through production cuts bolstered oil prices above $50 through last week. But that rebound made more high-cost U.S. output profitable, leading to a recovery in American drilling that threatens to spoil the cartel’s bid to balance an oversupplied market.
Written by Tom DiChrisopher for CNBC.com