Low Oil Prices Could Last As OPEC Cuts Won’t Suffice - Energy Intelligence

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Low Oil Prices Could Last As OPEC Cuts Won’t Suffice

An OPEC production cut offers oil producers hope for higher prices in 2017. But there is a dark cloud hanging over that expectation. Global storage inventories must be substantially reduced before higher oil prices can be sustained. Some of U.S. tight oil has nowhere to go but into storage because it can neither be refined nor exported. If all OPEC cuts take place as announced, it will be at least a year before sufficient inventory reductions allow prices to move much higher than current levels. If not, lower oil prices will last even longer. The…
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Categories:   Oil Market