Over the past few years, technological advances have made US shale oil profitable at much lower prices. Accordingly, higher shale oil supplies will weigh on prices. For one, higher-than-expected shale oil production in the US partly offset Opec and non-Opec production cuts at the beginning of this year. Accordingly, higher shale oil supplies will weigh on prices. “As a result, oil inventories remain high, particularly in the US—a key factor behind persistent weakness in oil prices,” pointed out a World Bank report on Global Economic Prospects.

Source: Mint June 14, 2017 06:45 UTC