Over the past year and a half, OPEC’S return to market management, by cutting supplies, in alliance with Russia, has resulted in_ a fuel price high enough – around $74per barrel – to encourage a massive ramping up of American shale oil production. The collapse of crude oil price from $100 to $30 had been too painful to bear.
Total American output of crude is expected to reach 11million barrels a day by year’s end compared to 10million barrels today. OPEC’s attitude to the American upsurge is to wait-and-see, hoping that higher world-wide economic growth will spur demand for crude and keep prices stable.
OPEC’S HQ, VIENNA
