American Shale Spoils OPEC’s Party Again

American Shale Spoils OPEC’s Party Again

Share to Linkedin MIDLAND, TEXAS: U. S. oil shale production is on pace to help domestic output have a record-breaking ... [+] year, complicating OPEC's attempts to manage the market and keep prices higher. (Photo by Joe Raedle/Getty Images) The global benchmark oil price has been stuck near $75 a barrel since May. Crude oil prices won't stay there forever, but anyone betting on where they go next should understand the complex pressures weighing on oil markets at the moment, including the resurgence of the U. S. shale sector. The media have offered a relatively simple explanation for why oil hasn't broken out of its narrow trading range. Fears of global economic slowdown and the knock-on effects on oil demand are effectively offsetting supply cuts by members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+), they say. Bearish sentiment about the economy – particularly China, the most important hub of demand growth – is real. The World Bank recently forecast economic growth of 2. 1% this year, down from 2022's 3. 1%, citing persistent high inflation and rising interest rates. But most leading oil market analysts and banks still expect a significant surge in oil demand