Disir
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- Sep 30, 2011
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The US shale industry is expected to shrink by more than 2m barrels a day following a collapse in global oil prices which has forced oil producers to shut down their fracking rigs.
The US oil market slumped to fresh 18-year lows and below $18 a barrel on Friday following one of the biggest hikes in US oil stocks on record as demand for oil continues to fall and storage facilities near their limits. The international benchmark oil price fell to $28 a barrel.
“The market knows that the US crude stocks will fill very rapidly,” said Bjørnar Tonhaugen, the head of oil markets at Rystad Energy. Tonhaugen said US crude oil stocks might reach an all time high by the end of the month and continue to build in May.
It's only going to shrink for a short time.
The US oil market slumped to fresh 18-year lows and below $18 a barrel on Friday following one of the biggest hikes in US oil stocks on record as demand for oil continues to fall and storage facilities near their limits. The international benchmark oil price fell to $28 a barrel.
“The market knows that the US crude stocks will fill very rapidly,” said Bjørnar Tonhaugen, the head of oil markets at Rystad Energy. Tonhaugen said US crude oil stocks might reach an all time high by the end of the month and continue to build in May.
US shale industry expected to shrink sharply as oil price falls
Producers forced to shut rigs as demand slumps and US market drops below $18 a barrel
www.theguardian.com
It's only going to shrink for a short time.