The price of crude oil has been caught in one of its most volatile couple of weeks in months after Oragnization of the Petroleum Exporting Countries (OPEC) and rival Russia hinted they may discuss a possible output freeze, as demand slows and a global surplus becomes more entrenched.
Reverberations from the oil price crash continue as more bankruptcies and increased geo-political tensions are causing a seismic shift in the long term outlook for energy production. With mounting pressure on oil-producing countries leading to civil unrest and more bankruptcies of highly leveraged oil companies, the bottom of the commodity cycle is well underway. The dominoes are falling and prices are rising.
As crude oil prices hit another 7-month high on renewed concerns about risks to global supply, the question becomes whether shale oil producers can come to the rescue. Around the globe we are seeing the loss of millions of barrels of global production offline causing many to worry about the sustainability of production in a time when global demand is rising. Canada, Nigeria, Venezuela and other producing regions have reduced oil production by an estimated 3.8 million barrels a day. Can the shale patch ramp up and save the day?
Crude oil prices are starting the U.S. trading session in positive territory after giving up some ground yesterday. Since the announcement of the potential production freezing deal oil prices are starting to stabilize with the week to date level just slightly below last week’s closing level as of this writing.
Venezuela's annual inflation rate is near 100 % and the economy will likely contract around 4 % this year, said President Nicolas Maduro, in a rare mention of data detailing the OPEC nation's economic woes.