The US oil sector is emerging gingerly from this year’s price crash and may even start increasing output again — so long as an increasingly fractious Opec agrees this week to keep propping up crude prices.
West Texas Intermediate, the US crude benchmark, has risen to $45 a barrel in recent days, buoyed by coronavirus vaccine news and expectations that Opec and its partners will keep curbs on supply deep into 2021.
The rally has raised hopes that America’s worst oil crash in decades is coming to an end. A modest recovery in drilling and well-completion activity is under way.
“Oil at $45 takes you out of the ICU,” said Ian Nieboer, head of research at consultancy Enverus. “But there is still a ways to go before you declare shale healthy again. That’s why Opec is so important.”
West Texas Intermediate, the US crude benchmark, has risen to $45 a barrel in recent days, buoyed by coronavirus vaccine news and expectations that Opec and its partners will keep curbs on supply deep into 2021.
The rally has raised hopes that America’s worst oil crash in decades is coming to an end. A modest recovery in drilling and well-completion activity is under way.
“Oil at $45 takes you out of the ICU,” said Ian Nieboer, head of research at consultancy Enverus. “But there is still a ways to go before you declare shale healthy again. That’s why Opec is so important.”
No comments:
Post a Comment