It is likely that any further production cuts by OPEC and Russia to maintain prices will be harder to implement if all it does is boost American oil producer’s profit margins and encourage greater investment in well drilling and completions.
Geopolitical issues and industry disruptions are confusing the oil market.
In reality, President Trump’s sanctions to stop Iranian crude exports are likely to be harder than envisaged and their success might lead to unanticipated crude price increases, which would be bad news for the world economy.
By Nicholas Newman Flame Amsterdam May 2017 For me, there were three key issues covered. The US-China gas deal, the New business model needed and the end of OPEC, and Global LNG prospects. US CHINA DEAL This year’s Flame was animated by the prospect of a trade deal between the […]