RE:RE:$6 vs $23OPEC can declare victory.They have forced the non opec countries to cut production using the price war .Canada has shut down new oil sand ventures and US shale oil is falling like a stone.This lines opec up to cut and force the price to $70 just below were new oil sands and new shale wells do not pay.But COS can deliver profits at $50.So the fix is in for a world wide oil cut and higher price.So companies will look to do M&A for companies like COS who will pint gobs of money in $70 oil.
Reuters:
There is evidence that U.S. shale production is starting to feel the pinch of oil prices near six-year lows, which has prompted the International Energy Agency to issue more bullish forecasts for the market balance next year.
Capital Economics analyst Thomas Pew said there has been a loss of some half a million barrels of oil per day in U.S. production in the last couple of months alone.