Worries about US shale output wave as oil hits three-year high

Worries about US shale output wave as oil hits three-year high:

"Brent crude rose to a three-year high of $70 a barrel last week, but there are questions about the rally’s resilience as higher oil prices threaten to unleash a new wave of US shale output. “The higher the prices go, the harder shale producers pump,” Tamas Varga at London-based broker PVM, said. He added, an “overdue correction could be under way”. Oil prices have been rising since late June, supported by supply cuts led by Opec producers and allies outside of the cartel such as Russia, which helped to curb excess stockpiles. "



'via Blog this'