OPEC Accepts Defeat In Anti-Fracking War with U.S.

OPEC’s attempt to overproduce crude oil for export to crush prices and bankrupt the American shale-fracking oil boom has failed, according to a draft OPEC long-term strategy draft report seen by Reuters ahead of the cartel's policy meeting in Vienna on June 1st. The report forecasts that crude supply from rival non-OPEC producers led by the U.S. “will grow until at least 2017.” “Since June 2014, oil prices have experienced a significant reduction, reaching levels even lower than the crisis experienced in 2008, yet non-OPEC supply is still showing some growth,” the OPEC report said. Flat to down worldwide demand for oil means that OPEC's 30 million barrels per day (bpd) share of production will fall to 28.2 million. The cartel can either cut output from the current overproduction level of 31 million bpd or tolerate depressed oil prices. The current international price standard called “Brent crude” has dropped from about $115 a...(Read Full Post)