OILS WELL THAT ENDS WELL

The Washington Times Weekly - - Politics -

Some un­em­bel­lished news for a change. “U.S. crude out­put soared to new heights in April, high­light­ing OPEC’s dilemma just days be­fore the pro­ducer group meets amid grow­ing geopo­lit­i­cal threats. A gov­ern­ment re­port on Fri­day showed U.S. pro­duc­tion grew 2.1% in April to 12.16 mil­lion bar­rels a day. Boom­ing shale pro­duc­tion from places like the Per­mian basin of West Texas have en­abled U.S. oil out­put to over­take Saudi Ara­bia and Rus­sia,” Bloomberg re­ports.

“At the same time, trade disputes and es­ca­lat­ing ten­sions in the Per­sian Gulf have clouded the out­look for the Or­ga­ni­za­tion of Pe­tro­leum Ex­port­ing Coun­tries, which is ex­pected to ex­tend cur­rent out­put cuts next week,” wrote an­a­lysts Stephen Cun­ning­ham and Jessica Sum­mers.

“It re­ally means that OPEC has to make a de­ci­sion to bal­ance the mar­ket or shale will do it for them,” said Jim Lucier, man­ag­ing di­rec­tor of Wash­ing­ton, D.C.based Cap­i­tal Al­pha Part­ners LLC. “De­spite all the talk about Wall Street forc­ing cap­i­tal dis­ci­pline, we’re not see­ing any di­min­ish­ing pro­duc­tion yet.”

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