OPEC's decision to cede no ground to rival producers underscored the price war in the crude market and the challenge to U.S. shale drillers. The 12-nation group abandoned its role as a swing producer, ignoring the steepest slump in oil prices since the global recession to keep its output target unchanged.
The U.S. has the most to gain and the least to lose as Saudi Arabia gathers with its OPEC allies this week to discuss the cartel’s response to falling crude prices.
The 20 analysts surveyed this week by Bloomberg are perfectly divided, with half forecasting OPEC will cut supply on Nov. 27 in Vienna to stem a plunge in prices while the other half expect no change.
U.S. crude production is at the highest level since 1986 and is on target to exceed 9 million barrels per day. Average price for Brent crude oil is expected to be about $18 a barrel lower next year than previously forecast."
Today oil will take its cue from the dollar. The dollar will move on the European Central Bank Statement that is due. With Japan going quantitative easing crazy, can the European central bank keep pace?
Anadarko Petroleum Corp. is teaming with private equity giant KKR & Co. in a plan to drill more than 500 wells across East Texas, a step that represents a major expansion in what was once one of the industry’s most prolific regions.
