Oil prices are expected to remain under pressure in the near term as global supply continues to outstrip demand, according to Martin Arnold, director and global FX & commodity strategist at ETF Securities.
US crude oil production is at its highest level in over 30 years, a result of the shale revolution. With 60% of total production coming from shale formations, rising production has lifted US crude inventories to record levels. Meanwhile, OPEC has continued to produce above its normal 30mbpd quota, to retain market share instead of supporting prices. Clearly, the resurgence in US production has come at the detriment of OPEC oil demand. US production of its own crude has displaced imports from elsewhere. The imports of ‘light sweet' oil mainly produced by shale and tight oil formations in ...
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