Analysis: US wildcatters impair OPEC’s production cuts

Wednesday, 04 January 2017

Swing supply sets the price of oil and significantly influences that of natural gas. Though OPEC members seem to have finally overcome internal rifts and are starting to implement production cuts – the cartel has lost much of its clout to US wildcats drillers who have effectively emerged as the new price-setters. A marginal recovery in oil prices can prompt American shale drillers to produce more liquids as well as shale gas that helps underpin an expansion of US LNG exports.

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