The Wall Street Journal reports on OPEC and shale drillers:
- The standoff between major global energy producers that has created an oil glut is set to continue next year in full force, as much because of the U.S. as of OPEC.
- American shale drillers have only trimmed their pumping a little
- Rising oil flows from the Gulf of Mexico
- The overall output of U.S. crude fell just 0.2% in September, the most recent monthly federal data available, and is down less than 3%, to 9.3 million barrels a day, from the peak in April.
- Some analysts see the potential for U.S. oil output to rise next year
"It was anticipated that U.S. shale producers, the source of the explosive growth in supply in recent years, would be the first to fold," Andrew Hall, chief executive of the commodities hedge fund Astenbeck Capital Management LLC, wrote in a Dec. 1 letter to investors reviewed by The Wall Street Journal. "But this hasn't happened, at least not at the rate initially expected." He declined to comment further.
Article is gated: As Oil Keeps Falling, Nobody Is Blinking
Oil is lower in Asian trade today, WTI back below US$40
--
As a ps., and different but related ... The crude oil market is seen as being in dire straits, but liquefied natural gas is much worse, according to experts
Thats from the Australian Financial Review, which doesn't appear gated.
LNG exports have been a big shining hope for Australia ... thus this is not a good development for Australia, not the AUD.