U.S. oil production is once again booming, and analysts see few headwinds strong enough to jolt the recovery off course.
Output in the American oil patch has surged about 9 percent to 9.3 million barrels over the last eight months. That recovery is seen continuing after OPEC's decision last week to keep a lid on production for another nine months, a move that helps to prop up oil prices.
The resilience of American producers underscores how OPEC has struggled to adapt to U.S. oil supply that can be quickly tapped as it becomes profitable to pump.
We expect oil prices to kept below $55 while the US does not take measures to curb shale gas and oil drilling from traditional fields as OPEC is currently compensated by US oil production. The US drilling capacity is currently 9.342m. Barrels per day and is almost to the record value of 9.600m.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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