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Wednesday, 1 February 2017

Oil market waits for Opec-shale tug of war to end

Oil market waits for Opec-shale tug of war to end:

"The oil market increasingly resembles a tug of war between two well-balanced teams. The question is what happens when one side finally gives way. Since the start of the year, crude has traded in a narrow range of just $5 a barrel, supported on one side by Opec joining with Russia to agree production cuts, but pressured on the other by a resurgent US shale industry, reawakened by prices back above $50 a barrel. The tensions in the market are acute. Hedge funds have lined up behind Opec by placing record bets that crude is finally ready to march higher following a two and a half year decline."



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