13 May 2015
US oil producers may have lost their battle with OPEC – IEA
FXStreet (Mumbai) - The International Energy Agency (IEA) on Wednesday warned that US oil producers appear to have lost their battle with the OPEC over the market share, but the war has just begun.
In its monthly report, the agency said, “In the supposed standoff between OPEC and US light tight oil (LTO), LTO appears to have blinked. Following months of cost cutting and a 60 percent plunge in the US rig count, the relentless rise in US supply seems to be finally abating."
The data from the operations and research firm Baker Hughes data show that the US producers have blinked first in their war of nerves with the OPEC. The latest data released for the last week showed the US rig count fell for the 22nd consecutive week.
However, as per the IEA, the war has just begun and "It would be premature to suggest that OPEC has won the battle for market share.”
In its monthly report, the agency said, “In the supposed standoff between OPEC and US light tight oil (LTO), LTO appears to have blinked. Following months of cost cutting and a 60 percent plunge in the US rig count, the relentless rise in US supply seems to be finally abating."
The data from the operations and research firm Baker Hughes data show that the US producers have blinked first in their war of nerves with the OPEC. The latest data released for the last week showed the US rig count fell for the 22nd consecutive week.
However, as per the IEA, the war has just begun and "It would be premature to suggest that OPEC has won the battle for market share.”