Viva La Oil "Oil prices are creeping back as global markets breathe a sigh of relief in the aftermath of the French elections. Crude oil sold off hard on geo-political risk and the perception that U.S. oil production is going to offset OPEC production cuts even if it’s not true. Of course the market believes it, at least right now, because if you say something long and hard enough, even if it is not true, the market will react.
Baker Hughes reported that drillers added oil 5 oil rigs for a 14th week in a row, now to 688 rigs. Shale production will increase to the highest level in 2 years as warmer weather makes it easier to produce. Shale drillers better hope that prices do not collapse because most of these firms adding rigs are in debt up to their eyeballs. Many are leveraged to the hilt and banks may run for cover if there is any pullback in price.
Yet as OPEC is widely expected
https://blog.pricegroup.com/2017/04/24/viva-la-oil-the-energy-report-042417/