All the while, oil prices continue to climb...yeah, go figure.
“All the while, oil prices continue to climb...yeah, go figure.”
Globally, supply has been restrained in a big deal between Russia and OPEC, designed to raise prices. Additionally, major producer Venezuela has been having a collapse in production.
Also, global demand has improved pretty strongly, as all 45 of the world’s largest economies are expanding at the same time.
The growth in US production is the biggest long term game changer in the oil and gas markets. We are adding more capacity than the rest of the world combined. OPEC’s relative market share (and power to control the market) has been dropping.
The US “Shale Band” for oil prices ($45-65) is likely the new norm in the mid-term for global prices. Something big might drive prices $20 outside the band for a few months, but its unlikely that anything could keep it outside that band for years.