Thursday 13 July 2017

Deeper OPEC Cuts Would Help Shale, Former Qatar Minister Warns - Bloomberg

Deeper OPEC Cuts Would Help Shale, Former Qatar Minister Warns - Bloomberg:

"OPEC would hurt itself and help U.S. shale producers if it adopted deeper cuts, the former oil minister of Qatar warned. "It’s not beneficial for OPEC to deepen their cuts because prices will go up and shale oil producers and others will take OPEC’s market share," Abdullah al-Attiyah said in interview in Istanbul. “The problem is that there is someone waiting in the dark corner for OPEC -- it’s shale oil producers and whenever prices rise, they raise production.” The Organization of Petroleum Exporting Countries and Russia’s quest to rebalance the oil market through a deal to curb production have failed to sustainably boost prices. Resilient U.S. shale output and rising production from Libya and Nigeria -- OPEC members exempt from cutting -- have diluted the group’s efforts and global inventories remain well above the five-year average."



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